Ciao Antonio,
I have analysed several scenarios during the last months.
Having an iMac G3 with ATI Rage 128 working properly & with hardware acceleration enabled it's a matter of a delicate combination between xorg version, r128 driver version, kernel version and mesa driver version + extensive tuning of the xorg.conf.
I am going to create a specific guide for enabling it so that everyone can follow it.
For the moment the most recent system you can install with a decent speed and acceleration enabled is the combination: Ubuntu LXDE 12.04 + kernel 3.19 with security patches from 2019 followed by downgrading of MESA to version 7.11 and xorg.conf heavy tuning.
You can download the 12.04 mini netboot iso from ubuntu site and then select the Lubuntu desktop as package to install, or you can try the Lubuntu Remix 12.04 live cd/usb. I have posted here some of the steps where I explain part of the process:
It was a hell of a job but as I was thinking yesterday, I managed to force the start up of X/lightDM :). If you have an iMac G3 (slot loading version) follow this procedure just for the installation via live CD. Boot the live CD/USB in recovery mode with yaboot parameters: live...
forums.macrumors.com
Hope it helped

.
Francesco