Originally posted by K12MacTech
Are you using a true OS9 CD, or are you using a Software Restore CD labeled as OS9 and for an iMac? There is a difference when using the older Restore CDs. I don't know about the OSX restore CDs since I haven't tried that, but I do know there are fundamental differences in how AppleSoftware Restore works for OS9 vs. OSX. The CDs that shipped as Restore CDs were many times machine specific, and the folder/question mark indicates that it can't find a system folder to boot from. What color is the CD you're using? It is probably white or grey. If I'm right and you are using a CD that says Software Restore, you need to try and find the one labeled Software Install. Even if labeled for an iMac it should have an OS installer on it.
Another alternative would be to borrow the software restore CDs from a friend with a relatively new mac (shipped with OSX10.2 or 10.3) and follow the instructions in Apple knowledge base article #107383.
You can also download OS9 if you don't mind the wait. You need to download 9.1 first, then update if you wish to 9.2.2 (there may be some intermediate updates required.)