Could be the hard disk drive has sector damages or other faults, and needs to be
replaced with another ATA/IDE older type hard drive. If the computer were checked
over by an expert, and if the HDD was determined to be the cause of failure, then
the answer and path would be clear...
If the computer model is of the correct vintage and you have original installer media
that shipped with it, (Panther, Tiger, etc) it should work if correct to the exact build.
A later retail DVD would be OK if you don't have the original gray-label install kit.
However without a better diagnostic method, the trial-and-error route may be prone
to causing damages to other items inside the computer, since many fragile parts and
wires are inside that could become sources of trouble after replacement of a HDD.
You could try your luck with shipping the computer away for diagnostic testing and
estimate on repairs to include parts, labor, and an offer of a guarantee on the work.
Since iBook G4 models (unless in pristine condition with complete OEM kit, in box)
are not expensive, it is still possible to get PowerPC Apple portables that have been
repaired, at about the asking price for dubious ones that appear on craigslist...
The PowerBookmedic site and also wegenermedia site both show older computers;
and you could probably send a portable away to either one for diagnostic and repair.
I'd had good results + guaranty, with a vintage computer sent to wegenermedia.com.
Could be, if the computer is worth keeping, it may be worth paying to fix correctly.
Or, you could look for a working similar computer to get by for now, at low cost.
So far, my iBook G4 12-inch mid2005 only needs a replacement battery; perhaps a
newertechnologies from OWC would do. Also they have a legacy SSD for older
portables that would work well in an iBook or PowerBook G4 at macsales.com.
Not sure what to suggest, other than tamper with the unit; carefully test the computer
and try an external FireWire400 enclosure with the correct chipset to allow for Mac OS
booting from the FireWire enclosure; if you can find one that'd work with a 2.5-inch
HDD portable size drive, you could test the computer & if you could make it work from
a system on external hard drive, later the HDD could be swapped. Those iFixit guides
can be helpful to some extent. Troubles include remembering where all the different
lengths of screws came from, and all the tiny wires and breakables, which may fail.
In any event...
Good luck & happy computing! 🙂