Your discs weren't appropriate for you iBook. MacTracker shows that all the 800 MHz iBooks shipped with 10.2.1 thru 10.2.4. Normally you can't install any OS that is earlier than the OS your Mac shipped with. I'm amazed that you got 10.1 to install and boot correctly. Using an Upgrade disc to install 10.2.0 is still short of the minimally required 10.2.1.

The earlier advise was best, forget about Jaguar, and get some Tiger install CDs or DVD, or clone an installed Tiger System with your iBook in Target Disk Mode. You'll be much happier with Tiger if you have the maximum 512 MB SoDimm (or minimally a 256 MB SoDimm).

If you're not going to be following my advice, and need to proceed from where you are at now, I would strongly advise running Software Update as many times as necessary to get fully updated to 10.2.8 with all the other Security Updates, etc, and THEN try to sort out any video issues that are present after the updates. There was a GIANT change in video for all Macs between 10.2.6 and 10.2.8, so it's likely that whatever problem you're having now will be resolved simply by doing the appropriate updates.
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