I just saw Didius' thread on what sounds like very similar G3 problem.

http://68kmla.org/forums/viewtopic.php?f=13&t=21863

A great save by Didius

Looks like I have a major re-cap to consider. This "free" G3 iMac could end up costing $$$. But it is a pretty machine, pink and rounded, and hard to resist its charms.

Rick