What made you think the processor was damaged?

Was it overclocked? Was the heatsink malfunctioning?It was running at 1050MHz - the heatsink was not malfunctioning.  I am only guessing that its the processor because the User Manual for this board says that this PARTICULAR error from D-LED MEANS the processor is damaged.  
I really don't know if it is or not - I don't know how to test it.What type of processor is it?

I do not know if the mainboard still has jumpers on it, but perhaps you need to reconfigure the mainboard by means of jumpers and not the BIOS.Its an AMD Athlon (the book said Duron, but the computer startup says Athlon).  The Mainboard is an MSI K7 Master-S (MS-6341) and yes, it has the CMOS jumper (and a bunch of others too).  I reset the jumper when this happened, but didn't get the desired result.

Is there a way that I can test the CPU??  Or does it require specialized equipment?There's no way to test the CPU but to put it in another mainboard.

Do remember that older mainboards require jumpers to be set in order to configure the Front Side Bus and may even have dip switches for voltages.Link to that MOTHERBOARD:

http://www.msicomputer.com/product/detail_spec/K7_Master_S.htm

And that motherboard/CPU was WORKING fine before this? Has anything happened to it since then, other than what you have posted? What revision board is this? 1.0, 1.1 or ?

(By the way, nice MB if it works!)