Old build new problem

Hi guys. My friend got a working junk PC since 2004-5. It was working fine but now it has developed a problem. It wont respond to the power button but the light on the MB is lit though. I have checked the cables on the MB thrice. after i leave it for some time then it responds to the Power Button but does not start the power button keeps blinking till i hold the button. still after sometime it starts and works fine but then again when i shut it down the same problem starts and i have to re arrange all the case-MB cables. What can be the cause of this. here are the specs:-
intel 845GVSR micro-ATX
Intel Pentium 4 2.00 GHz
Kingston 2*128MB RAM
LUNAR 125W POWERSUPPLY!!!!(Remember Thats not mine)
a DVD Drive (combo)
a seagate barracuda 40GB
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  1. Other than indicating that the PSU is plugged in and turned on, the motherboard LED does not mean anything.

    First step, replace the PSU with one of these:
    Corsair 400CX (30 amp 12 volt rail)
    http://www.newegg.com/Product/Product.aspx?Item=N82E16817139008

    Then, if it is still broken:
    Our standard checklist and troubleshooting thread:
    http://www.tomshardware.com/forum/261145-31-read-posting-boot-problems
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