First issue… I guess somebody around here is gonna havta fix this since it's becoming a regular thing.
So I rebooted into the MacOS9Lives CD to try to do DieHard's suggestion in the Disk Setup. It did not recognize the whole harddrive (only ~130GB), and did not offer me the option to install the necessary driver:
https://postimg.cc/SXMSNq6x
I am so sorry, apparently the "boot" part of out install has the older drive setup 1.92 (even though our 9.22 image has the newer 2.1 version), so don't use the one on the root of the CD when you boot, instead double click our drive image and navigate to the drive setup 2.1, that one will see the whole hard drive past 128GB...
Second issue: I'm assuming you mean you were able to boot from the FW HD
before it was imaged… when it was a "real" drive.
You can't boot from an imaged drive and System because
the System has to boot in order to mount the image to find the System you're trying to boot from… Yup, it's a conundrum.
You should use the Panther Restore to setup and partition the 1TB drive, install OSX, install OS9 and bless the OS9 System folder then birdies should sing, flowers should bloom and all will be well………maybe