No, first go to the Classic pane of System Preferences and choose to open Classic to the Extensions Manager. When it opens, select Mac OS 9.2.2 Base. Click restart and see if it launches properly. Usually this is an extensions issue - many extensions that worked fine under OS 9 don't work properly in Classic. If that installation of OS 9 was used to boot directly into OS 9, it's very probable that there's an extension incompatible with Classic installed.
If that doesn't help, you need to find a clean OS 9 System Folder from some other source.