Depends on what kind of surges your talking about. My computer has no doubt sustained some damage from the rash of near constant power outages in my area about a year ago during the summer. I've got a surge protector on it (a decent one - nothing special) and I've managed to survive most of it but I suspect that it did a number on the sound card I just replaced a couple of weeks ago.
The other possiblity is that your power supply was DONE (thats a technical term

). It happens...they shoot sparks, they blast out smoke and they die. The quicker you open your case up and clear the stench out and the quicker you get a new power supply the better. HOPEFULLY, cross your fingers here, there has been no damage done to your internal components...if it was shooting sparks, hope that nothing has been damaged.
Eletrical shorts and the like can be very wacky on components. Sometimes causing no damage and sometimes causing the entire system to get fried.