Sorry, my bad! The memory that you already have installed can be swapped between the slots. Another way to check out what's happening - is to remove one of your memory cards, and try the test. If that passes, move that memory card to the _other_ slot, and test again. If you again get a good test, install your second card in the now-empty slot, and test _again_. If you now get a failure, you know which card is bad, and which slot it is in. You may find that one slot always tests bad, regardless of which card is installed in that slot. The only fix, in that situation, is replacing the logic board. Apple used to have a replacement program for certain models, but is expired, and no longer an option. Replacing a logic board in a G4 PowerBook is probably not worth doing, but you _can_ upgrade to the largest card for the one good slot, which will be 1 GB, and will be OK for a lot of uses.
I'm not saying that you _will_ have a bad slot. More than likely, just one card is bad. You do some of the switching/testing, and you can determine which card that is, and replace with a new card.