Hi Michelle,

Upgrading the iBook is very easy, you can even do it by yourself if you 
want.
I upgraded mine with a 512MB memory stick and an Airport card when I 
bought my clamshell two years ago. Haven't upgraded the HD yet, but it 
seams very easy aswell (it's a regular 2.5" HD).

See the following link for a detailed installation guide for the 
clamshell:
http://www.pbfixit.com/Guide/49.0.0.html.

But if you're not that handy than Wegener Media would be a good choice. 
I bought a tray-loading CD-RW for an iMac a few years ago from David 
and had no problems with payment (Paypal), delivery and such. 
Unfortunately a friend of mine broke the drive a year later :(

BTW If I were you I would go for a 512MB stick instead of 256MB 
especially when you're planning to run OS X. My clamshell now has a 
total of 576 MB (this 466MHz has 64MB onboard, IIRC models below 366MHz 
have 32MB onboard) and Panther runs fine on it.

Anyway I can recommend Wegener Media.

HTH,
Marc



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