Definitely something wrong with the video. It's folding over at the top, could be a lot of things wrong. Try disconnecting the logic board and crank up the screen control and see if you can get a fully scanned raster out of the monitor. If not, then you need to troubleshoot that first before you work on the computer section. The foldover could be anything from cold solder joints on the vertical transistors to failing electrolytic caps.
A common failure in these machines is the surface mount electrolytics on the logic board. But, usually that produces a checkerboard pattern on the screen. The "Dead Mac Chimes" can be caused by several things - bad RAM, bad contact with the RAM, failing logic board, etc. You should get a happy "Ding!". Even with no hard disk, you should get a "Ding!" and a flashing question mark diskette icon on the screen.
But, first things first. Check the power supply voltages.
-Ian