Do you have a test eprom? Looks like the reset section isn't working.

Use Leon's test rom, you won't need the logic probe (or a led and resistor) to see if the reset section is working. At least you will know which board is causing the problem. The double board setup is a pain to work on, but at least with Leon's test rom you can do a pretty exhaustive bench test.

Are you running Leon's test rom with the other roms installed? Take those out, it sound like one of those is bad. When the led's flash and go off, the board is trying to boot. It could be a blanking issue too, but I think that Leon's rom will still flash the led's on and off if there is a blanking problem. You installed the test rom at IC17, correct?

Not really. With the test rom installed the display should be flashing 0 and the leds should be blinking on and off. It's been awhile since I worked on a system 7, lately they have all been system 6 and lower.

Did you burn the test rom yourself or purchase it? I believe that someone stated it before, it should be a 2532 for a system 7.