I'd run Mac OS X 10.5.8 "Leopard," which is the highest OS version the 1.67 G4 will support (the 1 Ghz and under only support 10.4--you're better than that). It's a stable OS and should serve you well. Going as high as you can go is your best bet for compatibility with software, however the G4 is 7 years old, so there's only so much software you can reasonably expect it to keep up with. But, if the older stuff got the job done for you then, no reason it can't now. Just be careful to keep copies of your older versions of software, in case the developer disappears installers for older versions.
What OS would you use on a Mac Powerbook G4 1.67 ? & a few other questions
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I'd run Mac OS X 10.5.8 "Leopard," which is the highest OS version the 1.67 G4 will support (the 1 Ghz and under only support 10.4--you're better than that). It's a stable OS and should serve you well. Going as high as you can go is your best bet for compatibility with software, however the G4 is 7 years old, so there's only so much software you can reasonably expect it to keep up with. But, if the older stuff got the job done for you then, no reason it can't now. Just be careful to keep copies of your older versions of software, in case the developer disappears installers for older versions.