screen changing colors like that could be caused by faulty logic board or display.
you would need to get it serviced.
if it is iBook G3 it may be covered by logic board replacement program:
http://www.apple.com/support/ibook/faq/
you can try pressing a little bit on the left side of the case - to the left from trackpad and below keyboard.
if pressing like that will cause color changes, it's likely logic board issue.