To clarify what headkaze said and what you did, you don't just look for a random jumper and remove it. Look on Gateway's website for that model of computer, or the motherboard manufacturer's website for that motherboard. In the technical documentation you should be able to find where the BIOS clear or reset setting is. Sometimes it is simply removing a jumper, but sometimes you have to move it to a different position instead of removing it completely. Try both.
To me it sounds like it's a corrupt BIOS and with a computer that old it probably doesn't have a recovery function built in which means it's likely dead. If the motherboard isn't a proprietary shape/size then you could replace it.
I looked at Gateway and nothing came up. I thought I googled it. Turns out some other company is handling support. I found the pdf manual, but nothing on the bios. It doesn't even show the inside of each model. I usually reset the bios by unplugging and pulling the battery. It seems to work in this case, since it auto-powers on after pluging back in, but since it's hanging maybe it is corrupt.
@Encryptor: The drive works in my PII so I would think it's fine. The hd drive light is not going on, but that shouldn't matter for the bios to load, should it? I don't even have any floppies around. Haven't used them in over ten years. Maybe a cd instead? The cd drive does work. But since it won't get far enough to try to boot even, I don't know if that would work?
By the way, the pdg says this:
"When you turn on your computer, the power-on self-test (POST) routine
checks the system memory and components. To see this information on the
screen, press TAB during POST. Press ESC to bypass the remaining
memory count."
However, ESC has no effect in this circumstance. Further,
"The system displays an error message if POST finds any problems. Write
down the error message that appears. See the “Troubleshooting” chapter of
Maintaining and Troubleshooting Your E-4200 System for a description of
error messages."
But it sees all memory and both cd and hd drives, and there are no error messages.