Hi, jobbertoo -
Okay, your G3 machine is a PowerBook (Firewire) model. It originally came with OS 9.0.2, which is a model-specific version of OS 9. All Macs have a minimum OS which they can use, typically the version that they originally shipped with.
This means that a retail OS 9.1 or 9.2.1 Install CD is suitable; since you have a retail OS 9.2.1 Install CD, it should work.
Yes, Mac drives can be partitioned into two or more volumes; many folk routinely do that, particularly with large drives - among other things, doing so can reduce net seek times. For most purposes, Mac OS's treat each partition as if it were a separate drive; this includes the ability to use each partition as a boot volume, with different OS versions on each (there are a few limitations to this, but none applicable in this instance).
It is not necessary to partition a drive in order to have both OS 9 and OSX on it. OSX was designed to be able to cohabit the same volume (a volume = an unpartitioned drive or a partition of a partitioned drive) as OS 9. On those later machines which shipped with both OS9 and OSX pre-installed, both came on the same volume. In that configuration either OS can be used as the boot OS, and OS 9 can also be used as Classic under OSX.
Many folk prefer to separate OS 9 and OSX; doing so can make housekeeping and, should it ever be necessary, re-installation of either OS much easier. Whether you choose to partition or not is your choice.
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If you choose to not partition the drive...
You should be able to install OS 9 directly, via a Clean Install. Note that in the Mac OS 9 terminology, a Clean Install erases nothing. Instead, it installs a brand new, 'clean' System Folder, an assortment of OS 9 utility programs, creates a couple of standard OS 9 folders {Applications (Mac OS 9) and Documents}, and little else - it will not overwrite anything. This Apple KBase addresses that -
Article #58176 - Mac OS 8, Mac OS 9: Performing a Clean Installation
You will need to boot the machine to the OS 9.2.1 Install CD in order to do that.
There is a possibility that when you have booted to the CD, the internal hard drive on the PowerBook will not mount (its icon will not be visible on the desktop). If this happens, it usually means that the drive was last formatted by using OSX's Disk Utility and the option to install OS 9 drivers was not selected. If those drivers are not installed, the drive can not be mounted by OS 9, hence is inaccessible for installation when booting to an OS 9 install CD. This Apple KBase article discusses that issue -
Article #106849 - Disk Is Available in Mac OS X But Not in Mac OS 9
If that is the case, the article suggests one possible remedy - using OS 9's Drive Setup to re-install OS 9 drivers. Unfortunately that rarely works, and it then becomes necessary to re-initialize the drive in order to get OS 9 drivers onto it. This erases the drive, so backing up things you do not want to lose is necessary.
You can re-initialize the drive using OSX's Disk Utility; if you do, be sure to select the option to install OS 9 drivers.
You can also use OS 9's Drive Setup to do the work; in this case OS 9 drivers are installed automatically.
In either case, select Mac OS Extended as the format.
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If you do want to partition the drive, you will first need to back up any data you do not want to lose, since partitioning a drive will erase it completely.
You can use OSX's Disk Utility or OS 9's Drive Setup to do the partitioning. If you use OSX's Disk Utiity, be sure to select the option to install OS 9 drivers; in either case select Mac OS Extended as the format for each partition.
The following article describes how to use OS 9's Drive Setup, including using it to partition a drive. OSX's Disk Utility is similar in logic, but the settings are on different pages.
Using Drive Setup
As far as a partitioning scheme goes, it would be very good if the hard drive is at least 10GB in size. If that is the case, you can probably get by with about 2GB for OS 9, and the remainder for OSX. If it happens to be a 20GB drive, I'd suggest 5GB for OS 9, the remainder for OSX.
There are two reasons to grant OSX the lion's share of the drive -
(1) OSX needs more room for installation.
(2) OSX runs best when there is at least 5GB free space on the drive after installation of OSX and its applications.
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I have not been able to figure out how to save my bookmarks and settings to a flash drive...
As far as copying off those items, someone else will need to advise as to where they might be located.
However, you might consider an alternative -
Get an external firewire drive, something around 20 or 30GB in size, or even larger. Use it to make a clone of your hard drive - everything will be copied over, including a usable version of OSX. Then do what you need to do to the internal drive; once that is done, clone the items back from the firewire drive. This not only makes moving things around a lot easier, it maintains their integrity - more importantly, it provides you with a backup and archiving drive. In order to clone the internal drive you will need to use a cloning utility, such as one of these -
Carbon Copy Cloner
SuperDuper!
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I would like to run in 10 and be able to open my 9 apps from my 10 apps. folder. Am i looking at a mac in the correct light?
Not exactly.
OS 9 and OSX are completely different operating systems. OS 9 is the culmination of a series of OS's that started with Mac OS 1.0 over 20 years ago, and shares some of the same basic costruction as the fist one. OSX, on the other hand, is brand new - other than some visual similarities, it shares none of the basics with OS 9 and earlier, not even the same logic of what is where and how various OS files interact.
This means that software written for OS 9 will not run in OSX, and vice versa - there are basic incompatibilities.
One solution for that, applicable to machines which can boot to both OS's (only one at a time, of course), is to have both OS's available and choose which to boot the machine to, depending on what software is to be used. Although your machine can boot to either, not all can - many late model G4 machines and all G5 machines can not boot to OS 9.
However, all OSX versions shipped to date can use OS 9 (OS 9.1 or later, depending on the model) as Classic. Classic is OS 9 used as a program (more like a shell rather than as an emulator) while booted to OSX in order to provide an environment in which many OS 9 programs can be run. An install of OS 9 can be used both for booting (for OS 9 bootable machines) as well as for Classic.
Not all OS 9 programs will fare well in Classic - specifically, OS 9 programs which require direct access to the machine's hardware (such as the graphics card) will not run well, if at all, in Classic - the reason is that OSX retains control of the hardware even when Classic is running. The group of programs most susceptible to this limitation is games.