It sounds like you may be having logic board problems again. You probably know that enough Dual USB G3 iBooks suffered from the logic board problem that Apple began the
iBook Logic Board Repair Extension Program in January of 2004. Check out the FAQ page and if the symptoms look familiar,
give Apple a call. If the iBook qualifies, it's a free fix. Again. (Mine has been back three times.)
You can find the original purchase date of the iBook, by entering its serial number into the box toward the bottom right of
Apple's main support page under "About Your Support Coverage."
If it is past the three-year time limit (which it well may be), try calling Apple at (800) 767-2775 and ask for
Customer Relations (NOT Customer Service--they can't help you) and ask them to please make an exception to the three-year limit in your case.
If the answer from Apple is absolutely, positively, "NO!" you may want to consider trying the shim fix suggested by John Sawyer in the Apple Discussions iBook G3 (Dual USB) Displays Forum:
[Y]ou can often fix this yourself by removing the iBook's bottom housing, and placing a shim of any sort, about 1mm to 1.5mm thick, onto the raised square on the bottom shield. I use a Scotch mounting square--you can get them in hardware stores and many grocery stores. When you reinstall the bottom case, it will press against this shim, which will press against the graphics chip, and may allow the chip to come into better contact with the logic board.
John Sawyer
CJS Macintosh Repair
Instructions for removing the lower case:
iFixit.com
If Apple doesn't come through, and the shim fix doesn't work (or you're leery of trying it),
DT & T Computer Services in Fremont, California offers the cheapest repair I've found. They have a six-month warranty on the repair.
Once you get it fixed, try never to pick it up by the left front corner alone. Rumor has it that can contribute to logic board failure when the case flexes, causing the graphics chip to come loose from the logic board. If you're picking it up in your left hand (as I often do mine), pick it up in the center under the trackpad.
Good luck. Let us know how things go.