I have been looking for exactly what you are selling for the past little while and have two sellers ready to sell fully working laptops at about $200 for each just to let you know. I am not sure if $200 is too much or I am getting a steal, one with original box and discs though I am not in a hurry to pay out yet, let me know what you are asking.
So these run from $135 US to $212.50 US depending on RAM, whether or not the discs & box are included etc... factor in between $30 and $50 for shipping and we get a range of $160 - $260
In my opinion (and to be fair I've been out of the used Mac market for about 3 years now)
So start with a base of about $200, add $20 if you have the box & discs, add another $20 for any additional batteries / extra power adapters / bags etc...
Now we have to deal with the Hard drive Issue... it's a bad time for a drive failure and a lousy machine to have a failure in. Bad time because flooding in Thailand has jacked the price of replacements up (so a replacement will cost 30 - 40% more today than it would have six months ago). Lousy machine to have a failure in because it's old enough to use IDE drives... this is an issue because smaller sizes are harder to find and larger drive generally equals larger price. The cheapest I was able to find was a Samsung Spinpoint 160GB drive at NCIX for $80 (however CanadaRAM has the same drive with no price on it so they may be beating that).
The point is that the replacement cost for the HD will be $80 plus labour (and before somebody else says it the swap out is really easy in that model, but unless your buyer's comfortable doing it they'll have to pay a tech to swap it out). So you should be discounting the machine by around $80 or so IMHO.
Fair with a bad drive is around $100 - $140 depending on any extras you have with it. You might get a higher offer from a Mac repair tech since the drive swap out is so easy and a tech is likely to already have a replacement drive on hand.
Again this is only my opinion based on the current market as I understand it.
Thanks to everyone, including those who find the time to bring a quick geographic 'info in passing'. I never cease to marvel, you guys here just rock. Hey However, I'm still searching for your dreamgirl there! Glad to see everyone still has brilliant and logical musings for me. I've got a whack of semi working ibooks and powerbooks. I'm going to take a look as to whether any of the hds in these systems are suitable. The ONLY THING wrong with the systems??? They ALL have a broken screen. I have a daughter who, well, let's not even go there. While I'm in that subject area, DOES ANYONE HAVE A 17" 1.67 powerbook screen for sale/parts? I just need the screen -please? Thanks again everyone. Keep up the never ending lessons in mac recycle-values.