Here is what the diagnostic LED's mean (they are labeled on the PCB).

HD4870 LEDs
D1601 - Red LED On, shows critical temperature fault
D1602 - Red LED On, shows External power connector A was removed
D1603 - Red LED On, shows External power connector B was removed
D601 - Red LED On, shows critical Core power fault

(taken from game.amd.com Radeon forum sticky).Marfoo

 That explains a lot. I can make a very good assumption that the lights shown were D1601 and D1602 since the lights were close to each other. So, I guess I can conclude that the power supply fried by graphics card, and yes, I will definitely make sure to tell a white lie here and there for the future of my computer, and also because companies are really greedy and it's all about the people man! ;)

Who knows, you might get more bang for your buck.Griffonzo

 Theres a reason I said that, but there is definitely more possibilities of what you can get for $800, and it's like he said, if you do it right, you'll get more :)

All right, thanks for the advice, that could probably be. Though I think I can take out my graphics card and examine it more closer for any obvious problems to the card. Then I can plug the VGA outlet straight to my computer, but from my understanding, the VGA outlet from my computer is broken. I have taken a turn to the worse im afraid, and if only I still had my old GPU that I sold to a friend I could've had a possibility of recovering some of my stuff on my computer before a long sleep of upgrading.

Thank you. But if there still is anyone who knows what the red lights mean, that'll be even more supportive. Now I will attempt to go to ATI's customer support in order to conclude this and see how I will be able to replace my graphics card.

Don't worry, it's still possible to get a basic gaming computer around your price range. For a CPU, try looking at a core 2 duo at @ 2.4 GHZ or better, or a basic AMD Athlon X2 or Phemon X3. After choosing one, GPU could be the most concerning. For ATI, look at a card around the HD 3000 or 4000 series, as it has low, normal, and high performance cards with some of it's newest technology still available to you. For nVIDIA, look at a high 8000 series or something place in the 9000 series. Ram, I would recommened 2 gigabytes of ram, but make sure you have the kind supported for your motherboard. Also for motherboards, im not in-depth about them, but make sure you have a PCI Express x16 slot which comes basic for most computers. Some popular brands are ASUS, Gigabyte, Foxconn, even Intel. A recommened amount of space for a hard drive according to your price range should be around 500 gigabytes. Finally, your power supply should have a wattage according to your graphics card's system requirements. For example: If a card needed 500W power supply, look for one at 550W or better to guarantee it runs.

If your looking for pre built computers (recommened for you) just look at brands with at least your wanted processor, or with ram, etc. Who knows, you might get more bang for your buck. But still you will most likely need to upgrade your computer, so look at newegg.com, a very trusted website with so many computer parts with price ranges (did I mention rebates?)

I hope this helped :)

 Hello, I have came back to the forums for desperate help.

 I was on the computer when suddenly the power supply went on full throttle and the screen froze. I turned it off in case it was a cooling problem, and then rebooted it. Though nothing was displayed on the screen, the rest of the computer still functioned. I peered into the case and saw that the ATI card had two red lights glowing that I never saw before. Once again, I turned it off and made sure that the two six pin connectors from the power supply was in correctly and made sure everything else from the graphics card was secured. This time when I turned it on, the red lights did not show and there was still a blank screen. I even tried to touch the graphics card's fan as the computer was on and it wasn't functioning either. Im afraid that my graphics card has turned to the worse and I need some opinions or answers on this.

 Here are my basic specs:

Intel E6300 @1.86 GHZ (1.87)

ATI HIS 4870 512 MB GDDR5

2 gigabytes of ram

HD 360 gigabytes

700W Power Supply

I am really frustrated, and L4D comes out next week :(