The only PPC Mac on which I use File Vault is my Quad at work, and I would say that the performance impact is negligible if at all present.
As mentioned, in Leopard when you log out or shutdown the computer you will get a "recovering disk space" progress bar that will take anywhere from a few seconds to few minutes to complete depending on how much disk writing you've done in that session.
It's also worth mentioning that FileVault encryption is somewhat dated by current standards. My work requires all computers(whether personally owned or university owned) that store "sensitive" information to be encrypted. FileVault 2 meets their standards, while FileVault doesn't. For that reason, I don't keep student information or other protected records on my PPC systems despite FileVault being enabled. I try to keep using PPC Macs as much as I can at work, but little things like this unfortunately keep pushing more of my workflow toward Intel Macs. The Quad has been getting a workout this week, though, as it has some software for which I don't have an Intel version.