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Your friend's computer was already broken. She needs to get it repaired. Your friend's Ibook needs to be diagnosed by someone who knows Macs or doesn't have their head up their butt about the topic of Mac vs. PC but it is obviously non-functional.
I'm not psychically diagnosing it but, I suspect she's run it without a surge protector and something has been zapped. :) At least the don't open another window thing sounds like what happened to my Mom's first IMac - that she bought on E-bay for $50 bucks because she found a Mac Game she liked at a rummage sale... don't ask I don't remember. She just needed a new power supply and a surge protector (she lives in tornado alley - phones get zapped out there). She persists in buying Macs on E-bay or at http://www.smalldog.com/ so she can game online - she's retired. She has a great deal of fun because she just connects and stays connected and chats with hundreds of other retired gaming lunatics - in many multiple windows. I like http://www.smalldog.com for referring people for refurbed stuff - I've had good luck with peripherals and supplies from them.
Other folks:
Where on earth did this bizarre idea that you can't open new windows in Mac or have multiple desktops come from?
I regularly work on my old and new Macs with five or six applications running, multi-chat (Adium now) up and I teach Web-based courses in a variety of different systems including just on my own ordinary Apache Web site.
Some of you who are confused need to keep in mind that the field is not the tractor. The network is your field...it can be heavy clay or lovely loam... that is If I am on slow free community Wifi things I connect to on the Web do so a lot slower than if I'm on a high speed university network or in my decent semi-rural DSL'ed office. That has nothing to do with the machine on the network.
re. Leopard I saw nothing in it that will be useful for me, so I did not upgrade. If it becomes something I need then I'll buy it.