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Under Schedule Options, have you checked the box for scheduled shutdown instead of scheduled sleep (Sorry if I've stated the obvious)?
If all the settings are correct and still the imac won't wake up, you might try dragging your energy saver preference file to the trash and restarting.
Well, so far I made sure the Scheduled Sleep box was unchecked and I tossed the Energy Saver Pref, restarted and tested, but to no avail. Nothing is connected to the iMac except the keyboard and the telephone line. Thanks for your suggestions thus far!
David, that box must be checked, else the machine is set to wake from sleep, not start up. Read my post again. Ensure the scheduled shutdown instead of scheduled sleep has a checkmark in the box. If not, the scheduled startup is disabled.