Best imovie version for a G3?

My G3 is a 350 Mhz blue and white with a 250 GIG hard drive and 768 MB RAM. Which version of imovie would work best with this G3?
I will also need to choose an operating system for this computer as well as imovie.
Which version of imovie should I be considering for this G3?
imovie1
imovie2
imovie3
imovie4
imovie5
imovieHD (I'm not sure if my G3 can even run imovieHD)?
and which OS for this recommended version of imovie?
I would like to keep my budget to a minimum and so I am not considering Tiger 10.4. Instead I am considering Panther. Does imovie come with Panther? Where could I buy imovie and Panther for my G3?
I would like to be able to make short quicktime movies and maybe edit my DV footage. It would also be nice if I could create a DVD however I don't think that is possible with my G3 because iDVD doesn't run on a G3. I will be considering adding a pioneer 110 DVD writer. How can I create a DVD from this G3? I could use toast 7 however I would rather look for an open source solution if there is one to reduce my budget. How about ffmpegX?
Basically, I am trying to push my G3 to its limit before I move on an buy another computer.
Thank you,

Thanks Thomas,
I am not planning on much video work - if any at all actually. I am coming to terms with the fact that this computer is at the end of its life. I was just asking how far I can take this G3 in terms of imovie but mostly in terms of choosing an appropriate OS for this computer - it will most likely be its last OS
If it can't burn DVDs that's fine and I will accept that - I just do not want to spend any more cost. You see, I will be buying an intel mac when they come out soon and then I will be re-designating this G3 as the family computer.
I considered a G4 a few days ago and they all seemed to be fairly expensive - $400 or so or even more. I will reconsider this however now that you mentioned it. Thanks. Basically, I do not want to spend much on upgrading it. Maybe just an OS.
Thanks Thomas.
This still leaves the question: What is the best imovie version for a G3?

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