Do you still own the original grey install DVD for your iBook? Insert that disc an press D after pushing the power button. The apple hardware test will come up, so you can test the hardware components.
My guess: maybe bad ram, or bad airport card (some G4 iBook had airport cards that were soldered to the logicboard and fail quite often) You can disable the airport and see if the kernel panic still occurs
Thank you for your reply.
Yes I do have the original disks but when I insert them and press D after pressing the power button, I get the same kernel panic come up as usual.
I think I'm going to try an external hard drive via FireWire to see if that helps.
Other than that I don't know.
The only way I can get it to boot up normally (although it being still in safe mode) is to try and eject the disk whilst it's restarting. The disk then tries to eject but doesn't come out. Reloads it and then it restarts again.
I know it has a very temperamental disk drive which is why I only use it for the Internet but I can't even do that now because of the safe mode disabling the airport.
If you have any other ideas, then please let me know otherwise it's off to the graveyard with this thing as it will probably be too expensive to fix.