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actually, you should pull the backup battery out, press the button for a second, release, let it sit for about 10 minutes, and then put the battery back. if you leave the battery in, it is still running power to the PRAM and can still retain corrupted settings.

have you tried repairing disk permissions? open disk utility from the utilities folder, select the drive and click "repair permissions", or in terminal type "diskutil repairPermissions /"

unfortanately, it appears that your harddrive has failed. as for the fact that you had just ran software update, (i see this a *lot*) i would think that its merely coincidence, tho perhaps it could also be attributed to the fact that the drive is working very hard when running the update, it...

Mac OS 10.3 runs on 128 megs of ram. 256 would be more than sufficient to make the system usable. I ran 10.4 pre-release with 192 megs on an iMac G3 500 - they said minimum is 256. However, there is no such thing as too much ram. install as much as you possibly can. The iMac now has a gig, and...

have you considered just booting the ibook into target disk mode and installing it to the disk that way? i've done it before with no problems.. infact, im going to do it again tonight since my ibook doesn't have a dvd rom....

My first assumption was the drive. And i still feel thats a big, if not the biggest problem you have. If its booting to only a grey screen with no apple logo or spinning apple, the machine is not finding a system to boot from. You also mentioned hearing the drive grinding away. The only thing...