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The ibook battery is user replaceable. Essentially, you'll need a quarter to release the old battery. I think batteries run a little over $100. You should order it directly from Apple or go to a 3rd part (authorized) reseller. A store is unlikely to stock a part for a laptop that has been out of production for that long.
As Martian mentioned, a battery's life is generally measured in charge cycles rather than time. Particularly with the older generation, the memory effect can reduce capacity.
Consider though, that the new battery for your iBook will be nearly 10% of the cost of a new MacBook.
With the heavy use that it sounds like you've put on your battery, over two years sounds about right for 1/4 life. You can also consider turning Airport and Bluetooth off and screen brightness down. Doing that in class usually extends my life on my MacBook by 30% or more.
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Cogito ergo spud -- I think, therefore I yam
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