My iBook lives!
We found a local Apple-certified sales and support person who has worked a miracle and revived my laptop, with a little help from an operating system upgrade. He said my hardware all tested out fine, and as soon as he loaded what he has found to be the best, most stable OS available right now, it was up and running. We spent a fraction of what it would take to buy the cheapest new MacBook out there. I am very happy.
He also, being a small business owner, is really going the extra mile to earn our business. I think we've found ourselves a new source for Apple products and services. It's a rare thing to find someone willing to be honest, even if it means making a little less money on that transaction.