I know the "try a CMOS reset" advice is dished out all the time and rarely actually fixes anything, but....try that on the MP-989. Pull the clock battery and main battery (even if it's dead, if it holds any residual charge, it can hold CMOS settings), then try booting after a few minutes. My MP-989 started doing exactly what you describe, and that's what fixed it.
Also, the MP-989 should be able to take an insane (for a Pentium II) 768MB of RAM!!! The only catch is that each 256MB module must have 16 chips (8 per side), and one of the three slots requires a low-profile module. I've tested with my MP-989, and it posts with 640MB installed. Haven't tried 768 because I only have two 256MB modules.
The MP-989 has ATI video so it should do just fine for early Windows games. It has the Maestro-2 sound chip, so DOS is probably best avoided.
And if you don't know yet, the MP-989 was manufactured by Chicony: https://www.macdat.net/laptops/chicony/mp989.php
I'll be updating my MP-989 page with more info and photos sometime soon. Max RAM is listed as 512MB on the page as until I got mine, no one had tested higher than that yet.
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