I'd recommend that you get rid of this 300 mHz iMac for the following reasons:
1. It's not reliable. You will wake up one morning and find that the flyback wheel is dead. This means the monitor will not be able to recieve power.
2. The RAM is too expensive. This limits your upgradability.
3. It's slow. The motherboard architecture is less than desirable. Recall that the iMac was a stripped down model, intended for home use. In 1998.
If you're lucky, you can get $50 for it on Craigslist. Then, if you still want a low-end Mac, (which you do) then you have, as I see it, three options, assuming you have a spare CRT monitor.
1. Spend $0-15 and get a beige tower with a G3 upgrade. It's pretty much a G3 iMac with more expandability, and you'll have $35 more to your name.
2. Use the $50 to get a G3 B/W tower. These are much more upgradeable. They have 4 168 pin RAM slots, a ZIF (right?) processor than can be swapped out with a G4 at a later time, 4 PCI slots, and FireWire. Also, you can safely overclock them to about +50 mHz without concern. The Blue and White G3s run at speeds of 300, 333 (I think,) 350, 400, and 450 mHz. Panther ran impeccably on my 450 mHz G3 with 256 MB PC100.
3. Go for the G4. We're talking an investment of $100-200. You'll get much better architecture, processor and motherboard-wise. You'll notice a big difference between G3 and G4. Also consider that most of the G4s have DVD drives, and will run Tiger OK. Also, you have to have a G4 to play internet video. That's a big deal in this day and age.