Did you try the Option key boot?
I have this same iBook with 10.4.11, which if you can beat the
artificial installer block will run fine without any modification.
One other thing, this iBook can boot from USB if necessary, but it's
slow since it's USB 1.1.
Do you know how to reset the NVRAM and PMU? Both may be helpful with
boot issues. These old clamshells are a little voodoo prone regarding
booting. I've once rebooted many times in a row using the Option key
until my OS X install CD was offered, but once it was offered, it
booted fine, even from an external USB CD drive.
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