Normally, iLife cannot be installed on the clamshell iBooks because the integrated iMovie
requires a 1024 screen resolution. The installation aborts.
However, I was recently able to install some iLife 04 components ( iphoto, iDVD, Garageband ) on my 366 clamshell by selecting the Install package on the DVD and selecting "Show original" in the Finder. Now the install packages of the individual components are listed.
iphoto grumbles when you start it for the first time that it prefers a 1024 resolution, but it works. You can even work with GarageBand, although the hardware requirements are higher, you could connect and play a keyboard, and you could also run simple demo songs for the G3.