What can I do with my iBook G4?

I just purchased a new Macbook and want to reuse my old iBook as a media server/player if possible.
I can plug it into my home theater with a USB cable and play movies and music on my TV but that is only when the lid is opened. I want to keep it closed and use my Macbook to connect to it wirelessly to control it and I want to store it in the stereo cabinet.
Is this possible?
It works fine, it is a little slow but it has 1.25 RAM and a 100G HD.
Is there any benefit to using it as simply a file server? I have an external HD I can plug into my router to store files on and be accesable to all my computers. Would it be better to use the ibook for this?
I hate to throw it away and I live in France and it has a US keyboard and power supply so it will be hard to sell.
What should I do with it?

Oh yeah, and I can also plug it in with an ethernet connection to my router so all computers can access it but i am having trouble waking it from sleep if the lid is fully closed.

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