There is a difference between classic environment and OS 9. Classic is an OS 9 emulator that runs in OS X. If you installed 9 from the software restore disks, then you have OSX with the classic environment and an actual OS9 system coexisting on the same disk. Your method for installing OS 9 is the ONLY way to have X and 9 coexist on the same disk, so your installation was the correct way of doing things if that was your intended result.
EDIT- by the way, 9.2.2 is the only version of 9 that will coexist with X on one disk, and is the version on you software restore CD (assuming it was an OS X restore CD). Classic runs a 9.2.2 emulation.