My brother is having issues with taking screenshots under 10.3.5, 350MHz imac g3, 384MB Ram. When he makes the screenshot, it is making empty files or files that give errors when opened. I'm not sure what component in OS X (coreservice) is used for this - whatever it is, it's invoked by shift-command-3/4.
When he tries to use the grab app, the options to take a screenshot appear to be blanked out. Did they change it so you need quartz extreme? His graphics card isn't high enough. It works fine on my system though. I have noticed this behaviour once in a while myself though where I would take screenshots and they wouldn't appear on the desktop or the files would be empty.