If the Dr. Seuss program is not alread installed, maybe that's the problem, and it cannot be installed via OS X / classic. I'm also assuming that the program will run in in classic mode. If the disk or box it came in does not say it's OS 9 (or at least OS 8.5) compatable then there is a better than even chance that it will not work at all on your computer.
I solved this problem with a program of mine by rebooting to OS 9, installing the program, then rebooting to OS X and then the program would launch in classic.
From your post I'm guessing you have OS 9 installed - this is not the same thing as "classic" mode in OS X.
To reboot to OS 9 go to system preferences, startup disk. If you have OS 9 installed you will see an icon for it here. Select it and reboot. When up and running insert the CD and do whatever to install the program.
After the install, To reboot back to OS X click the apple menu, control panels, startup disk. Select OS X and reboot.
If a program is OS 9 compatible it should run under classic in OS X, but who can say if that's 100% true for all OS 9 software. Conversely, I know of some programs that came out long before OS 9 but will run in OS 9 and in classic mode in OS X.