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Power supply LED blinks when connected to motherboard but it stays lit and fan spins with paperclip test

My aunt brought me her computer for help because she couldn't turn it on.

I found that when I plugged the computer into the outlet, the Bestec 300 watt PSU's LED was blinking green and made a ticking noise each time it lit. Pressing the power button did nothing.

So next, I pulled the PSU out of the PC and tried the paper clip test plugging it into the green wire and a black one next to it. The green light lit and stayed lit, and the fan worked as well.

Can anyone help me diagnose the issue? Originally I was going to buy a new 400 watt ATX PSU but now I'm not sure what to do. Help please!

The PC is a Compaq Presario SR1222NX.
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