Yes, J1 is the top (checked mine - which has original 64MB in J2(lower) and the 128 I added upper when I bought.
I got wife's additional iBook RAM lately from
http://www.4allmemory.com/ (lifetime guarantee; free shipping) for good deal.
also, their pages let you know what type of memory you need. You first select "Apple"; then the specific model: "Apple PowerBook G3 400 (Pismo)" - so there's know question like "let's see, exactly what was the official G3 name of Pismo?"
4allmemory page for your specific model also helpfully has link to apple installation instructions for your particular model.
http://docs.info.apple.com/article.html?artnum=25002
I am thinking they're in error about lower being "non-removable" - it's more like hassle-to-remove (getting down under motherboard instead of just under keyboard). The installation page just shows installation for UPPER slot. To get full 1GB would take 2 512MB modules (the lower of which I think has to be "LOW PROFILE"). I'm going to be doing the 512 J1(upper) slot upgrade shortly, myself - prob via these guys.
Also, if you want to see what's involved in getting processor card out to install *LOWER" memory module, there are great pix at the PowerLogix site (designed for those sending their CPU card in for upgrade):
http://www.powerlogix.com/support2/n.../installation/