iBook - A Few Questions...

I know some about macs but not sure what to do in this situation. I just got an iBook G3 366MHz/128MB and it has Mac OS X 10.3.9 Panther, and it seems to be running very slowly. In my opinion, ive looked up that these laptops were released in 1999 so they must have obviously came with Mac OS 9 something. So, im thinking that this computer is just too slow or doesnt have enough RAM to run OSX 10.3.9 and it is something like installing Windows XP on a computer that came with Windows 95. To give an example of the slowness, nothings really running and you can go on to say youtube and the video plays at like two frames per second and the sound skips. The GUI of OSX itself isnt that slow though and programs take somewhat long to load up although not too bad. So what would be best here, going back to OS 9 or is earlier versions of OSX like 10.2 faster on slower Macs, or are there some tricks to make this version faster? Any opinions appreciated...