My hunch is that this is multiple problems masquerading as one.
While the machine is off, try reseating the front panel board connector at both ends, and MAKE SURE the button component on the front panel board is securely soldered to the joints (I had to hot glue mine back because it actually broke off and I didn't feel like soldering tiny components or buying a replacement). A couple of weeks ago, the power button on mine wouldn't do anything either (in fact, the light just shut off one day). I ended up having to get the connector into a just right position for it to communicate properly with the rest of the system.
And I'm not 100% on this, but there is a chance that reseating the GPU with the machine still connected to power turning it on is standard behavior. I believe I also encountered this myself once before, however I never handled board cards or components with it plugged in again.
If it doesn't freeze in Leopard
too shortly, use Spotlight to quickly check the syslog in Console for the date and time of the last freeze. Chances are, it will have something there resembling a clue. However, I still maintain that your freezing issue is incompatible RAM.
Personally, I would first take a chance with this option to cut costs:
<p dir="ltr">Corsair Value Select VS1GB333. Condition is Used. Dispatched with Royal Mail 1st Class.</p>
www.ebay.co.uk
But on the other hand, these Crucial modules will most likely be the safest bet if you don't feel like chances; they seem to be about the same to what I've got:
Find many great new & used options and get the best deals for Crucial CT12864Z335 (1 GB, PC2700 (DDR-333), DDR RAM, 333 MHz, DIMM 184-pin) RAM Module at the best online prices at eBay UK! Free delivery for many products!
www.ebay.co.uk