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I'm not sure about the reliability of this model but I know some ibooks have issues with the graphics chip coming loose from the logic board.
As for OS's, it shipped with 9.2.1 and 10.1.2 and supports up to tiger.
 
I had that one, i never suffered from the traditional gpu failer (rather i fried the chip while ocing it)
without me being stupid it was a rock solid laptop and it ran os9 grate
 
I've also owned one before, it had the backlight screen issue that so many of these suffered from... But if it's still going now it'll probably never suffer from that issue.

I think they're solid, fast'ish machines that natively run OS 9 so that answers your question, BTW, that ad is a great price for one of them.

Also that model would have 16mb VRAM, just for reference ;)

Definitely a good buy :)
 
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