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I loaded 10.3 on the same drive as my 9.2. When I try to start up in 10.3 a blue screen appear and it stalls. I did notice that it goes blue after trying to do network initialization. I tried too restart after setting extensions to base 9.2.2 but it did not help. Should I start again by initailzing the HD and then reloading 9.2.2 and 10.3 ?
A fresh install is probably your best bet.
The settings for OS 9 extensions will have no effect on OS X.
And, while I don't mean to be rude, make sure you are using a legit copy and not a copy of doubious origin.