Error of type -127

[June Parlett]

After not being able to get the computer restarted, meaning that it hung up
while loading the extensions, I finally got it to open with extensions off.
Then I looked at the extensions, and turned one of them off, and restarted,
then the same thing happened, then I started up with extension off, and
while I was back in the extensions, I turned an extension back on. Then
Something dire happened tonite while I was linking to a rather large website
from a url link in an email to answer questions about being a computer
graphic artist. Well, the site too a long time to load, and I am on a DSL
line then when it came open, there was a security warning, twice, then it
hung up, when I clicked on something else in my Harddrive to check to see
how much Harddrive space I had left, which was 865mb. Then when I went to
shut down from the Special Menu, I got this icky message: The start up disk
no longer has a valid system folder. System and Finder must be in the System
Folder. If you continue you may not be able to restart the computer. NOT be
Able To Restart The Computer! What is this. I did not mess with the system
folder. I turned off a

While this was going on before I got the message, I even opened up a
document that I had notice there in my hard drive to read, and tried to make
a copy of it, so I could past it into an email and send it to myself at
work, when I saw that desk top was devoid of any icons, and the HD icon was
flickering. When I clicked on it, it gave the same Error of type-127. Can
someone please answer me asap.

I have a bondi blue G3 using OS 8.6. This is freaking me out.
June Parlett
I also have a G4 on which I am writing this. I have Apple Care for the G4
not the Bondi Blue iMac