I had similar problems. I download it from version tracker, as soon as it made it to my desktop, my "Classic" finder quit on me! it rendered my OS 9 unusable and unbootable! I ended up restarting with my os 9 cd, throwing it into the trash, restarting up as normal, then burned it on to a cd. I then upgraded from the burned copy and everything went fine from there (other than OS 9.2.1 kinda sucking!).
On my iBook, I use OS 9.2.1 (no OS X yet on it). when ever I disconnect from the internet using the control strip, my iBook freezes! Everytime I close dreamweaver ultradev I get an "error type 7." And, entourage seems to crash now and again. Also IE 5 has been having problems since the upgrade (down grade?). Not sure if it's worth it for OS 9 users. It works great under OS X. I don't have those problems under OS X for some reason...