Not sure whats going on because my iBook G3 before it died worked just fine and it has the same video card.

I don't know if this related at all but Panther is showing this in console, read the 18th line. http://farm4.static.flickr.com/3343/3333450099_9c2734310f_b.jpg

That only came up in safe boot, it doesn't boot regularly.....