A steady or Amber blinking power button indicates a low voltage problem. This can be caused by a defective power supply or a defective motherboard. Just to make sure that nothing else is causing the problem, remove any PCI cards like modem, video card, sound card, etc... Remove the memory modules and disconnect cables to CD/DVD drives. Look at the USB ports to see if any are damaged.
For the Optiplex 320, a flashing amber light with no sound indication can mean 3 things.
1) Your power supply has failed
2) Your motherboard failed, most likely from a bad capacitor.
3) The front panel board (where the power button is located) is faulty or not connected properly.
I've worked with 10's of 1000's of Dell Optiplex's over the past 8 years and the flashing amber light is well known as a tell-tail sign of one of those three failure. Always start your trouble shoot with a PSU tester, then inspect the motherboard for domed or split/leaking capacitors...then on to the front panel which would require another panel and ribbon from the same model.
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