I'm also having the identical issue running Gutsy Gibbon on my G3 iBook:
upon waking from sleep the system starts up, but the display looks like
there's a problem with the logic board (horizontal stripes).  Mine are
green, black and white, but I'm sure the issue is the same.  Sounds like
this is a fairly widespread problem.

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System incredibly slow after suspend, refuses to restart
https://bugs.launchpad.net/bugs/99675
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