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Good to find other iBook G3 owners.
I have an iBook Tangerine G3 300Mhz 288 MB RAM OS X 10.3.9 10 GB HD, the very first version (32 MB on-board RAM).
It's up and running 24/7, and close to its 10th anniversary. I got it in late 1999. Upgraded the HD from 3 to 10 GB like a couple of years later. Works very well with Panther, even still have OS 9.2.2 installed, boots and everything - brings back some good memories, haha.
No battery and the CD tray cover is gone (ibook was lent to my sister and my 2 nieces for about a year - was surprised it came back working). CD drive hasn't worked for many years, it will hardly read brand new CDs, won't read CD-R/W. Also, no airport and someone cleaned the screen with some very abrasive substance like a couple of months ago and ruined it, although everything is 100% readable.
I use it almost exclusively for transmission (torrent) so I can get some of my favorite TV shows and some movies. It's hooked up to my home LAN, sharing files with my iBook G4 1.33 GHz (yes, I have the very first and the very last iBook models) and Vista Toshiba.
I agree, great machine. Keeps working, can run a number of applications decently, although I can't really stand 800x600 for very long, drives me crazy.