PowerPC Macs can only be booted from the internal drive or from a Firewire drive. (sorry!)
The newer Intel Macs can be booted from USB if certain conditions are met, but not your iBook G4. See https://discussions.apple.com/thread/1777473 for more info.
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I just went through this same issue myself, so I feel your pain.
PowerPC Macs can only be booted from the internal drive or from a Firewire drive. (sorry!)
The newer Intel Macs can be booted from USB if certain conditions are met, but not your iBook G4. See https://discussions.apple.com/thread/1777473 for more info.