$1000 is way out of line!
I have personally seen an issue in the last models of the PowerBook G4 where the optical drive actually fails, causing symptoms similar to what you report. To isolate the optical drive, follow the steps in the ifixit guide for your model to loosen and lift up the top case (try to not disconnect any cables - there is enough slack to flip it up like a hinge and rest it against the display). Then simply disconnect the optical drive connector from the logic board. Reconnect the keyboard cable if it detached and carefully set the top case back in place. Carefully connect power back to the unit (don't let anything touch the exposed circuit board while it is energized), and attempt to boot off of the hard drive. if it boots properly, you know the optical drive is bad.
If you are not comfortable with the above steps and are near an Apple Store, schedule a Genius Bar appointment - they do not charge for diagnosis done at the bar. They can tell you exactly what is wrong.
Replacing the optical drive or hard drive shouldn't cost more that $200 if done by a third-party (Apple will be more expensive, but also more thorough and comes with a 90 day warranty) - if you feel up to doing the repair yourself, you can get either drive for $100 or less right here at iFixit and use the guides to complete the repair. If you were comfortable with lifting the top case, then the hardest part is over - both drives are just 4 additional screws from replacement.
[quote|David Iwanicki]$1000 is way out of line!
I have personally seen an issue in the last models of the PowerBook G4 where the optical drive actually fails, causing symptoms similar to what you report. To isolate the optical drive, follow the steps in the ifixit guide for your model to loosen and lift up the top case (try to not disconnect any cables - there is enough slack to flip it up like a hinge and rest it against the display). Then simply disconnect the optical drive connector from the logic board. Reconnect the keyboard cable if it detached and carefully set the top case back in place. Carefully connect power back to the unit (don't let anything touch the exposed circuit board while it is energized), and attempt to boot off of the hard drive. if it boots properly, you know the optical drive is bad.
If you are not comfortable with the above steps and are near an Apple Store, schedule a Genius Bar appointment - they do not charge for diagnosis done at the bar. They can tell you exactly what is wrong.
Replacing the optical drive or hard drive shouldn't cost more that $200 if done by a third-party (Apple will be more expensive, but also more thorough and comes with a 90 day warranty) - if you feel up to doing the repair yourself, you can get either drive for $100 or less right here at iFixit and use the guides to complete the repair. If you were comfortable with lifting the top case, then the hardest part is over - both drives are just 4 additional screws from replacement.[/quote]