You should have said where you were earlier... and yes i think I've dealt with the USED MAC guy when he was in Hollywood... is he a Brit? Always fair with me.
I'd still do a 10.3 on the imac, ask him. I ran OS9 through 2003 on my then new Titanium Powerbook and let me refresh my own memory here... it crashed. It froze. OSX is way more stable than OS9 it is a new universe and you will have no trouble running it on the 266.
He's Middle Eastern I think. Maybe Pakistan or something like that. Very nice guy and was extremely fair with me.
I have the machine at home now with a few issues. He did not get OS X installed but he did get 9.2.2 and firmware 1.2 on it. He also partitioned the drive to the full 128 GB and that might be the root of the problem I'm having now. I am trying to boot on the 10.2 CD he lent me so I can repartition the drive and install it. It's just sitting at the apple screen and not going any further. I suspect it's either because the drive is already partitioned too large or something else that I know nothing about is happening.
Are you in the LA area? I live near Sherman Way/Winnetka in the Valley.