Oh my gosh you guys! LONG ago, I replaced the reed switch in the iBook, and it did not solve my problem!
But today! I FINALLY FIGURED IT OUT!!! :)
It turns out that it was the ''keyboard''! I replaced my old keyboard for a new one because I was trying to get rid of the [http://lowendmac.com/menagh/06/1013.html|common smelly iBook problem], and it turns out that that new keyboard was causing the iBook to have weird issues! Can you believe it!?
So, I reinstalled my old keyboard and surely enough, it's working again.
I was able to figure it out by removing the sleep magnet completely. I thought, I might as well remove its sleeping-by-closing function to just stop the restlessness altogether, but when I closed the lid, it STILL woke up!!! So, I was able to deduce that it '''had''' to be something else magnetizing the reed switch. CRAZY!
It was the keyboard. There's nothing more to it! Thank you so much for all of your advice and help. I appreciate it more than words can say. :)