New to servers, is this one dead or what?

I have worked on computers for a long time now, including building the one that i am currently using. I bought a server recently which is still under warranty but i am having trouble with it.

It is a IBM eserver xseries 366- beautiful machine. (a bit loud though lol)

Anyway i do the regular stuff that i would do with any computer. I plug in a monitor and a PS/2 mouse. as well as two power chords for each PSU. Now i should also tell you that it does not have any hard drives yet, i have ordered them, but so far i am testing it without them. Basically i can push the button and it seems to turn on pretty good. By "pretty good" i mean all of the fans turn on, green numbers appear on the I/O card, green lights on a few bards, etc.

The problem is that nothing ever shows up on the monitor.

After about 30 seconds i get two beeps (which i looked up and it just means "hardware has changed" or something. I also get a blinking orange LED in the back that means "RSA2 slimline error", which is some Add-in card that allows remote management or something. However even if i remove this add in i still get the problem. (not the blinking LED, that goes off, but still nothing shows on the screen) In either case, i also get a Led on the light path diagnostics that says "NONRED" which means that it is taking more power then one supply can provide, which makes no sense to me, as i have not installed any options.

Are servers incapable of booting from CD? shouldent i at least see something on the screen?

please tell me is this is a very bad error or just me being stupid, as i would rather not return it if i do not have to.