The best OS X version for the computer in question, regarding performance for the configuration
would be Tiger OS X 10.4.11 with the last supported applications specific to that OS X. And as
that is the only other OS X than Leopard 10.5.8 that can be run in the computer, if you want to
run both OS X 10.4.11 and 10.5.8, the hard drive needs to be large enough for both versions of
OS X to have large partitions. And be formatted as two separate drives; then each OS X would
be able to use some of that unused storage capacity as Virtual Memory, since those systems do
like their RAM and only 1.5GB installed is not enough physical memory. So temporary 'swap'
space is required.
In my iBook G4 mid-2005 12-inch 1.33GHz configuration, stock 40GB HDD is about 2/3 full.
The RAM is upgraded to 1.5GHZ (512MB soldered on board) and the rotational HDD is slow
and is a bottleneck to using storage capacity as Virtual Memory; the read-writes are too slow.
You may be able to locate an original install-restore DVD software set for that specific iBook
so as to have the correct full Tiger 10.4 and the associated applications. I have the original
that shipped with mine, and also located more than one retail 10.5 DVD + iLife, Works, etc.
Mine is running 10.5.8 but it's like half the computer it was when running 10.4.11, which was
a superior and highly refined OS X. Probably one of the best OS X ever; another great one
is 10.6.8 from the early intel-mac era; stable and well-adjusted. What 10.5.8 should've been.
If you get a new larger capacity hard drive, be sure to make it ready before attempting to install.
This should be done in an external enclosure, so a running OS X can set it up correctly and then
test the drive before it's installed. Also to make a clone on a different suitable external HDD so
as to be able to have a bootable copy, is always a good backup plan.
See about FireWire400/800 enclosures that supports OS X and MacOS booting (chipset.)
Some fair affordable choices I see in the OWC macsales site are self-powered with AC adapter.
An external HDD enclosure could be running two 7200-RPM hard drives, or so. For internal up-
grade, consider the task of carefully installing a new Mercury Legacy SSD. Or have a pro do it.
There is an SSD upgrade at OWC that could be the ticket to speed the unit along, it will cost &
is likely worth it. See product: http://eshop.macsales.com/shop/SSD/OWC/Mercury_Legacy_Pro
The same vendor has some good replacement batteries, to consider. Mine needs at least one
but otherwise is a lot like a new iBook G4, stored in double cases, & has all original accessories.
Though I'd like to have bought a PowerBook G4 12-inch 1.5GHz their RAM upgrade was 1.25MB.
(I was given one of those G4 PB 12" that needs major repairs -- looks like it was in a battle & lost.)
In any event...
Good luck & happy computing! 🙂