That thing is the antennae for the original airport (wifi). Not worth really trying to re-use it as the connectors will not fit current wifi cards.
It is a sawtooth model type by the looks of it, but you can check the exact model with one of the serial number lookup services such as:
http://www.appleserialnumberinfo.com/Desktop/index.php
As Gus said, there are a number of mod.s you can find on this forum and on others that will show examples of using these cases.
Main things to think about are:
1. Air flow, options here are: you can cut holes in the floor and put a fan or watercooling in and still keep it looking original on the outside; you can modify the back plate and change where the power supply sits and put more fans on the back if you want; others have also cut the roof and put fans there.....
2. DVD area at the front - unless you buy your Micro ATX board very carefully you will either not be able to fit a full size DVD drive (at all) or will need to cut off some of the case of the DVD player as often the RAM or capacitors on the Micro ATX board will hit the DVD drive and stop the case closing.
3. The rear panel - most of these are not done very well and often some ports are blocked, or one of the PCI slots is lost (the pillar between the I/O panel and PCI slots is not placed well for ATX specification).
4. Motherboard mountings are in the wrong place. Options are usually to drill the door and put new mounts on and cut old mounts off.
5. Power supply - the configuration of the power supply on these is not the usual ATX configuration but it is possible to find some that will fit. You will of course though need to buy a new PSU as the Mac connections and specifications naturally are not to usual ATX standards.
You have lots of possibilities to modify and either make it look like original or make it look unique (in a good way or a bad way!). I have two of this model that I am playing with at the moment and will be sharing ideas on the forum - in fact I have 4 G4s at the moment two Sawtooth, one QUicksilver and one Mirror Drive Door. Insane I know, but I am taking them apart bit by bit and hope to make some kits to help modify them.