Try a magic eraser on the keys, but be careful, they can wear off the lettering on the keys, I have seen it get wore off if too much pressure is used, so I can vouch for that warning about the lettering
The keyboard is also replaceable, follow this guide and put it in the dishwasher, or you can replace it right away and not bother with the dishwasher, take your pick
this is the removal guide
iBook G3 14" Keyboard Replacement
Here is a video of uxwbill putting his Dell Latitude D800's keyboard in the dishwasher(this is a last resort if a magic eraser fails to do anything, let it dry for 24-48 hours if you do this)
If you do this, don't follow how he takes it apart, it's way different on the iBook
http://www.youtube.com/watch?v=UDAlIPP--...
If the smell doesn't go away, it's not going to go away and you're stuck with it, and you need a replacement keyboard to fix it
[linked product missing or disabled: IF150-002]
http://www.ebay.com/itm/Apple-Ibook-G3-M...
Remember, any attempt to clean it that is successful will not last forever, it will just buy you more time to avoid replacing the keyboard, but you will have to eventually
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This was a known problem some years ago and as I recall the only reliable cure was to replace the keyboard. Had to do that once myself--what a stink.
by rj713