EX490 recovery fails on steps 2,3 and sometimes 4 -- plus a blinking blue light

[mmargevicius]

My HP EX490 server died. It has my music, home movies from the kids, and thousands of photos... needless to say, pretty important stuff.

In attempting a recovery, I follow everything like I should, but it fails on recovery each time; sometimes its during steps, 2, 3, and 4.  I am at my wits end as to what to do next.

Also, when it boots, the colors alternate blue/red until done booting.  Then the light starts flashing blue (about once a second).  The manual describes the meanings of the light flashing red, but makes no mention of a flashing blue.  

Does anyone have any ideas on what is going on?

Thanks a bunch in advance.