Upgrading mom's iBook for the future......?

So exactly this time a year ago I bought my mom a iBook G3. She had had problems with PC's for years and ended up stop using them all together. So I got the iBook G3 off ebay with the following:
iBook G3 300MHz PowerPC G3
32MB on board + 256MB SDRAM
10GB 4200rpm hard drive
CD-ROM drive
AirPort Wireless card 802.11b
battery, charger, etc.
All for $150 including shipping.
I loaded a copy of Mac OS X Jaguar onto it at first, then in early April, upgraded it to Panther. Seeing the system requirements for Panther were the same as Jaguar, I thought "wat the heck."
She has gotten into pictures more so I found a 4 mega pixel Kodak digital camera for about $50, brand new. This will be her New Years gift. You can tell that I find excuses to buy computers and electronics for my family, lol. I know 1GB will not be enough to use this camera. So here is where the upgrades come along.
I have opened the machine about 15 times, just because of random shutdowns and minor problems, so I know it pretty well. I don't wanna be told to go buy a new laptop because she loves it, style, size, reliability, etc.
Would 30GB be enough for a bargain upgrade, or should I shoot for something along the lines of 60GB for security. 60GB in a clamshell iBook, thats like a dream. Also, I have been looking into more ram. She has the current 288MB, does the slot support swapping out that 256MB SDRAM for a 512MB SDRAM card? That would bring the total to 544MB of ram which would speed up Mac OS X a lot!!!
What about Tiger? I have been setting up some networked printers and such latley and it seems that Mac OS X Panther has become "obsolite" when it comes to easy networking. I know Mac OS X Tiger isn't officially supported, but it would be easy to load. Would that be a worthy upgrade or should I leave it at Panther and deal with some networking extra work for me.
One last thing. If she has a digital camera, she will probably want a CD-RW drive. How much does a plain old CD-RW drive for the clamshell cost? no DVD read probably.
Thanks everyone and I will enjoy hearing the responses.

Hi Aaron -
Seeing as you don't mind going in to the machine you might as well install a HD and Optical drive at the same time. Any standard ATA low profile laptop HD will work (40G worked fine for me) and DVD/CD-RW drives will fit without issue - check out this database for drives that others have easily fit...
http://forums.xlr8yourmac.com/drivedb/search.drivedb.lasso
You can install 512MB of ram ...just make sure your firmware has been updated...
http://pure-mac.com/appud.html#ibookfwud
Tiger can be installed ..but for the hassle I recommend sticking to Panther as others generally find this system faster with these books.
That's my $0.02 for what its worth - and if you add another $12 bucks to it you'll get the price I ended up paying for my DVD drive

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