@magnetic: Well, I agree with Bladerunner that OSX is way too slow on a G3, and I've used it on a Peg1 and now on a Peg2 G3, too. On G4 it's ok, but nevertheless it falls way behind a real G4 Mac, even 2D-wise.
Linux is good on G3 (I'm using Gentoo with GNOME 2.14), and MorphOS works like a charm (also most Games and Emus like MAME or UAE)