If you do want to bake the GPU and see if it helps, I may be able to assist there... i've done some GPU reflow work on these iBooks as well. Ultimately you will need to remove the lower case and EM shield, then the top case, keyboard, the steel plate below the keyboard, the heatsink and fan assembly and possibly the LCD too. basically break the machine down until you can get clear access to the GPU, then just use the burning method as described above. I used a heat gun, but it took a lot more precision timing with the heat gun than the tea light method.
then burning it shall be.

the machine is broken down to bits, i have nice, clean access to the gpu. it's hard to miss, since it has a nice 'ati' logo on top. i'm assuming that i have to place the candle light on the
top as opposed to the bottom seen in the burning 'tutorial'. the g4 ibooks have the gpu on the upper side of the mainboard, and it wouldn't make much sense to start heating the board itself on the bottom: the gpu might come even looser. please correct me if i'm wrong.
Hopefully we should get some input from the other forum members soon as well, i'm getting pretty tired myself as I type this so who knows when i'll be back... i'll try to keep posted on the thread though and offer what I know.
thanks, you've helped me a gread deal so far, and i have all the info i can get, now it's up to me to do the 'dirty work'.

i'll do the burning after breakfast, and post my results. maybe some nice pictures, too.