The second screen shot is certainly the boot manager screen. If you don't see a cursor (it doesn't appear in that screen shot), then you have something seriously wrong. Try a USB mouse to see if you get a cursor when that's plugged in. Any USB mouse should work for that.
Your first screen shot is a typical kernel panic. That's often hardware related. I would try reseating the RAM memory chip. If you lift up the keyboard on the iBook (there's latches at each end of the fKey row), you will see a graphic showing how to get at the memory slot. There's only one slot.
If you don't get a cursor with an external mouse, then you may have other hardware problems that will not be worth fixing.
Try a couple of resets
Hold the power button until the iBook shuts off, or disconnect power, and remove the battery, to make sure you're completely off. Battery back in, and plug in the power adapter. Wait for about 10 seconds, then press and release the power button. immediately hold Option-command(Apple)-P and R. You'll hear the boot chime. Keep holding those same 4 keys until you hear the boot chime 2 more times, then release the P and R, and move to O and F (that's the letter o, not zero). If you hold those Option-Apple-o and f, you should then get the Open Firmware screen.
At the prompt, type reset-nvram, and press enter (don't forget the - between the words, no spaces)
The response should be OK.
Then type reset-all and press enter
Your iBook should restart.
Hold Apple-S while the screen is still dark.
Shortly after the Apple appears, you should see some text scrolling down. Release the keys.
At the prompt, type /sbin/fsck -fy
and press return. You should see that the hard drive is being tested with various tests.
If that completes with no problems found (does it?), then type /sbin/mount -uw /
and then press return.
When you get the prompt back, type reboot, and press return again. and - Should reboot then.
If you get the same kernel panic - you'll need OS X reinstall CDs to fix.
