I ran a 5300cs for weeks at a time as a router (running personal web sharing as a VERY light webserver) with no problems besides what you would expect with a 5300... ;-)
It was painfully slow at webserving, but perfectly fast at routing!
A higher-end PowerBook ought to work admirably. The Wallstreet can even run AppleShare IP (it's supported by Apple, even). But anything PowerPC can do basic webserving like a champ. You don't need a lot of horsepower unless you do a lot of PHP crunching or database intensive lookups (or intend to have lots of simultaneous transactions).
If you don't expect to ever have more than one or two visitors at a time, a PowerBook will work fine. The hard drive is a significant bottleneck - access times are slow and throughput can be quite pokey.
There are no display issues - allow your display to turn itself off after a short period. Heat issues aren't issues if you aren't irresponsible - don't close the lid, don't set the PowerBook on top of a deep shag carpet or thick blanket, etc.
Or do you guys think I'd be better off just buying a Beige G3?
Well, of course! If you want to have serious muscle, go with a desktop with a fast disk and LOTS of RAM.
Peace, Drew --
Author of ClassicStumbler email: <[EMAIL PROTECTED]> web: <http://www.alksoft.com/>
Visit the PowerBook 5300 FAQ! <http://www.alksoft.com/5300_FAQ/>
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