Today I called Apple support regarding the locic board repair program:
http://www.apple.com/support/ibook/faq/
They say it is fully covered and to take it into a service centre. Luckily I called them first and found out that even though my hardware is covered under the listed serial numbers the service centres will run tests, if the hardware fault isn't found they charge you $65 for labour.
I called Apple back, was put through a rude product specialist who said yes that they can charge whatever they want and only if the hardware fault is found is the cost covered.
In other words you are taking a gable. Your iBook has a serial with a known problem, you take it in they test it, if it does have the problem they fix it for free, if it doesn't you get charged $65 for your troubles.
For me this is not good service.