(3) After configuring SheepShaver, I quit the application. I then installed a GENERIC, RETAIL OS 9 CD (ver. 9.0.4) into my iMac. I then launched SheepShaver, which started without any problems. I was prompted to initialize a new volume, which I did. This went without incident.
(4) My problems arose when I tried to install OS 9 from the installation CD. When I click on the "Mac OS Install" icon on the CD, a window appears with the following message:
I wonder how you "installed" the OS 9 CD in your Mac.
In your first post you wrote that you run OS X 10.9.5 on your Mac. Yet, OSX 10.8 and later prevents mounting of physical CD-ROMs in SheepShaver. So how could the installation CD appear inside SheepShaver? And from which volume did you start up SheepShaver?