Hi, cjgump -
Installing OS 9.1 (or 9.2.1) will not wipe out OSX. The two OS's are designed to cohabit the same volume - neither can replace the other via installer action.
When installing OS 9 (any version) onto a drive which already has OSX on it, OSX has an internal folder which can confuse the OS 9 installer. The OS 9 installer can mistake that folder as being an existing OS 9 install, but one of unknown version - the result is that the OS 9 installer will refuse to install.
The solution for that is to do a Clean Install of OS 9. In the context of OS 9, a Clean Install removes nothing - the action installs a brand new, 'clean' OS 9 System Folder, a fresh set of standard OS 9 utilities, and little else. By doing a Clean Install, the OS 9 installer will ignore that OSX folder.
Article #58176 - Mac OS 8, Mac OS 9: Performing a Clean Installation