What's wrong with friend's iBook?

[Joe]

She says:

  "Yesterday I had to take my 12"/G3/800MHz/384MG/Combo iBook to the 
Apple Store to get serviced. The Guru on call said that from my 
testimony and seeing it for himself he thinks that it is a problem with 
the Logic board.

The problems it was having were:

1) After wake up from sleep or turning it on, it would not do anything 
besides beep. The screen would stay dark, and the hard drive made it's 
clicky noises and nothing else happened even when letting it sit for 
five minutes or more.

2) If it did load up, it might crash during startup (ie the spinny 
disc-tools icon would stop spinning)

3) If it did boot up then there were problems with the graphic 
interface, as in scattered lines on the left side of the keyboard, and 
the gray apple would displace lines which would show up to it's left.
a) sometimes the entire screen would blur into multi colored bands and 
scatter the entire monitor.

4) I noticed something rattling in the lower left part of the body 
(where my left hand rests when I type)

5) The visual problems seemed partially connected to motion, as I was 
in a moving car when the problem first arose.

6) At least twice at the store, the computer booted up (as I was trying 
to back up important files) and there was a pretty serious kernel 
panic. It was so bad that the computer couldn't fully print the panic, 
and it cut off after two or three lines.

Luckily, I was able to load my hard drive as an external firewire on 
the powerbook at the store so I could do a quick back-up.

I didn't drop it, it's never gotten wet. Luckily it's still under 
warrantee so the estimated $350 or so in repairs are not my 
responsability.

Could someone translate what might be going on? I haven't had the time 
to learn much about the hardware involved in my new machine. I know 
enough to recognize that it probabley is a hardware problem (probabley 
not my hard drive, so my software *should* be safe...), but beyond that 
I'm lost."

I told her that Apple will fix as it's within warranty so don't worry 
about it, but I think she wants a more technical reason what went 
wrong, lol