Well, it's the logic board that is faulty (well the graphics chip...it can become disconnected from the logic board if you grab the lower left corner thereby flexing the logic board popping out the graphics chip...). This is a big enough problem with enough iBooks that they started the Extended logic boar repair plan. However, it is probably almost over for all iBooks as they are getting dated. The plan outlined an extended three year warranty repair protection for the logic board starting three years from purchase. Since most iBooks are well beyond three years, the plan is pretty much over.

For my iBook, the plan ended thirty days ago (Sept. 2, 2006). But thankfully to the awesome powers of Apple customer relations, they were willing to make an exception and fix it for free. They're sending a box to me and I'll ship it to them to fix it. I'll hopefully have it back by the end of this week or the beginning of next week.

So to all iBook owners: Don't handle/lift/carry your iBooks by the lower left corner (the corner to the left of the trackpad). Always use two hands when the laptop is open or at the very least handle/lift it in the middle by the trackpad. This is the working theory at Apple discussion boards at least. I would do this for any laptop though.