Are there even 1 GB PC133 SODIMMs available? Personally I would think that any performance gained from having 2 GB of RAM (assuming you can find 1 GB modules for it) would be minimal since it's limited by the slow processor. Certainly it wouldn't be worth the cost of 2 GB of PC133.
I can't say if there's a hardware limit... I'm quite sure the Wallstreet and old tray-loading iMacs are limited to 512 MB (256 MB in each slot). Also, the Mirror Drive Door PowerMacs are limited to 2 GB of memory, even if you put a 1 GB module in each slot.
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