Just to follow up to myself, I've upgraded to woody and installed pmud. With the patch at http://penguinppc.org/~trini/pmud_0.7-3-ibook2.patch applied and using a 2.4 kernel from BenH's rsync with some other minor changes which should be in soon (so screen works and the right features are picked) sleep works well. The fan doesn't kick on ever tho, yet :(
-- Tom Rini (TR1265) http://gate.crashing.org/~trini/
