I don't see why it wouldn't work. In my experience, the only true system requirement that has proven a problem for any app I've tried is screen resolution (I think it was iMovie? I don't remember, but it wouldn't run on my iBook, since the max res is 800x600). Once I get software onto older machines, in all my expereience it runs fine, even if it doesn't meet a fairly trivial hardware "requirement". Usually these requirements seem to only give problems while running the installer itself.
I'm looking at putting Tiger on one (or maybe both?) of my G3s, but both are firewire. I'll try booting my iBook (which seems identical to yours, ubergeek, in all respects except the firewire) from Tiger on my machine at work, and see how it handles it.
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