Okay, looks like I found another issue with this iBook from 2004. Looks like gpu is dying. I’ve tried some games and Red Faction gives me artefacts. I downclocked gpu for 10% and these lines went away.
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Didn’t see such in os itself or in other games, but I also didn’t see such things on my iBook from 2005 so it’s definitely an iBook 2004 issue. I also tried OS X Tiger on 2004 and it was the same, same artefacts in RF.
I switched fans to maximum I didn’t see any artefacts, so downclocking and better cooling gives some space for this machine.
Though I my experience it’s still a dying gpu. It’s just not dying instantly, these old ATI chips just can’t hold temperature as they die, in normal conditions it could artefact on 80c but a dying gpu will bug you on basic 60c.

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Didn’t see such in os itself or in other games, but I also didn’t see such things on my iBook from 2005 so it’s definitely an iBook 2004 issue. I also tried OS X Tiger on 2004 and it was the same, same artefacts in RF.
I switched fans to maximum I didn’t see any artefacts, so downclocking and better cooling gives some space for this machine.
Though I my experience it’s still a dying gpu. It’s just not dying instantly, these old ATI chips just can’t hold temperature as they die, in normal conditions it could artefact on 80c but a dying gpu will bug you on basic 60c.