Yes it will. With a little more RAM, it will run 10.3 (or with XPostFacto 10.4). Max RAM on that bad boy is 2x256MB = 512MB, but your RAM modules will need to have 16 chips on them, otherwise they will read as 128MB each instead of 256MB. Max internal HD is 128GB ATA, and you can easily upgrade the optical drive to a much newer one. Straight swap apart from the front bezel. Don't count on it being quick enough to burn a DVD though......
Loc: Florida, USA
To keep in mind you need to make two partions. the Main partition should be no greater then 8GB and you can use the rest of the drive for the second partition. Don't ask me why but the old iMac doesn't like using a main partition greater then 8GB. It can run on a bigge partition but programs can be picky.
Funny that, its basically the same machine as the PowerBook Lombard, but they were fine with bigger partitions. Just as picky about RAM though. I should add that if you do bump the RAM up and get Panther or Tiger running, get PC133 RAM. It should be happy with PC100, but OS X is very picky on these machines. I find the over-spec stuff tends to be much more reliable.
If you started with 96MB, thats 32MB plus 64MB. Sounds like you swapped out the 64 for the 128. The RAM in the lower slot underneath the CPU card has to be lower profile than the RAM on in the top slot. Maybe your 64 won't fit underneath?
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