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Many iBook G3s came with optical drives for CDs only, not DVDs; and the decoding software for many of today's popular video formats runs extremely slow on all G3 processors. It's not clear that there is anything wrong with your computer other than its age. The first iBook G3 models were ten years old last February.
Sounds like a Power Management problem.
First unplug the power cord and remove the battery.
Leave off for 30 mins, then pop the battery back in and try to power up.
Failing that, follow this link on Apple's site.
If you look on the dvd drive there is a little round hole. Just get a paper clip and straighten it out and stick it into that hole. There is a little button that you push with the paper clip that is a manual eject button for cases like this.
The blinking file folder with the question mark can happen when the computer doesn't "see" your System.
It can be caused by a faulty hard drive, or by a damaged operating system.
You can try to reboot the mac, hold the mouse button during 20 seconds to eject the CD, then insert you installation DVD (leopard). Reboot the Mac again, and hold the "C" key. Select english, the go to the tools menu, and Disk Utility. Go to the SOS tab, select your drive and click "repair". If something red appears, it means that it has found something wrong on your hard drive.