I have a Bondi imac, and Mac OS X 10.1 works fine on it. I have 196 megabytes of RAM, and 10.1 is MUCH faster than 10.0.
Be careful with the boot drive size though, and as the 10.1 read me will tell you, on a 233, the Mac OS X partition should be completely within the first 8 gigabytes of the...