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Although I haven't tried that yet with my PowerBook, they are designed to run in lid-closed mode, so it should be fine. Otherwise, you could take it back to Apple if something did go wrong. I'm assuming you have a last generation TiBook or AlBook.
 
after it has booted up with the external display i always open up the display lid a bit to let air in. Im using a 1.33 Ghz 12" w/ 768 Ram
 
no i don't use a stand. I just place it on my desktop then open up the lid a bit after it has booted up with the external display. The powerbook end ups loooking like this: < lol
 
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