Thanks for the help everyone!
@HighlordDave: Yup, an audible bang...and then a burnt kind of smell...
@smass: Surge supressor/power strip? Sounds good...so obviously my question is....are they expensive?!?
@Yshania: Well....it's comforting knowing that someone else has been through the same thing. By the sound of it...I should be hoping that it is the power supply that has died. I guess the thing Im worried about is if it took any other components with it in its fall...
Anyway, I handed the computer in yesterday. By my description of what had happened they also thought that it was the power supply unit.
Ok...so I have a follow-up question. Is there any way of preventing this from happening again? Was kind of scary with a bang and the burnt smell....computer just dying. I turn the computer off every night and also plug it out. Is that good/bad?!? Also interested of what "smass" was talking about. Don't think I really understand surge supressor/power strip.
Anyway, as always you guys and gals, really appreciate the help. My guess is this wont be the last time I have problems with computers...

“Child abuse doesn’t have to mean broken bones and black marks. Young growing tissues are far more vulnerable to carcinogens than those of adults.
Knowingly subjecting children to it is child abuse.”