Hi, Jason -
Unlike OSX, OS 9 can be copied via a Finder copy process and still retain its full functionality.
This means you can do a drag-and-drop copy of the OS 9 System Folder to another volume such as another hard drive or partition of one, and it should be bootable immediately.
You should also be able to burn the System Folder to a CD and have it remain valid for use when copied back to the hard drive. Note that this will not be bootable while it is on the CD, but is should work fine after it has been copied back to the CD.
It is a good idea to also copy the Documents folder and the Applications (Mac OS 9) folder at the same time.
After all the copying back and forth is done it may be necessary to fix one or more aliases, since the pathname in an alias that points to the original does not get changed when an alias is copied. This can include an alias to Sherlock in the Appke menu (physically located in the Apple Menu Items folder in System Folder), and perhaps one or more in the Application Support folder in System Folder.
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Is there something built into OS 9 which would allow me to burn a backup CD of the operating system that I could restore if nessacary?
OS 9 includes a program which can create disk images - Disk Copy. It is one of the standard utilities included with a normal OS 9 install.
If you have Disc Burner installed, you should be able to use it to burn data to a CD. However, I don't believe it can burn a bootable CD - you'd need to use Toast for that.
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If that can't be done, how would I backup the system if I added a second drive?
If you add a second drive, all you should need to do is drag the OS 9 System Folder from your original drive to the icon of the new one, and let go - Finder will copy it there. Ditto any other folders or files on the original drive.
You can test boot to that OS 9 as soon as Finder has finished copying it - it should be bootable immediately.
One quick and dirty way to do a whole-disk backup - just drag the icon of the original drive to the icon of the new drive, and let go. Finder will copy everything to the new drive, including anything left out on the desktop and anything left unflushed in the Trash. It will all be placed in a new folder on the new drive; the folder will be named the same as the original drive.
In that instance, before test booting to the new drive, move the System Folder out of the folder it was placed in so it is at the root level of the drive (visible in the initial window that opens when you open the drive); do the same with the Documents and the Applications (Mac OS 9) folders.