Make sure you're running the iMac at its native resolution and not another. Since you neglected to tell us which iMac G5 you have (year and model) we can't advise what the resolution should be. But usually, if you go to System Preferences, Displays, (depending on version of OS X) you can set the resolution to the default native one.
And no, Safe mode only limits what drivers are loaded, they are not different from normal mode.