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You've got nothing left to lose, so try it.

Target Disk mode.

You could even use this method to reinstall the operating system on the PowerBook if you see you can repair from the iBook.

If you go ahead and install in Target Disk mode, just make sure the OS X disk you have for it has a black label on it : if it's grey and didn't come initially with the PowerBook, it won't work as these are hardware specific.
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