you will have to edit the config block thusly
For years now, myself and many others have made attempts to upgrade soldered RAM on PowerPC-based Macs, without any success. As I've found from my vast experience doing such upgrades on Intel machines, just swapping the chips is not all that needs to be done; the system's BootROM also has to be...
forums.macrumors.com
there is GUI tool config block editor, that leaked recently, for editing this sort of stuff, but I have not personally messed with it much other then finding it in the CD and poking at it a bit
This CD was found in an Apple iBook G3 EVT laptop. The disk is labeled Bandit 18 (1.2f4). It appears to contain an installer for MacOS 9.2 along with several...
archive.org
but I think you should be able to use it to edit the config block for the PowerBook2,1 Apple 4.1.7 firmrware update, so it updates that to the 128MB/1MB configuration of your machine
or as Colin does you can dump the BootROM and update things according to the config block document