@Mat,
You said, yours is working perfectly, is the Graphics Acceleration working?
Thanks a lot buddy, and to all who have responded and posted on the thread for all your suggestions and recommendation. I really appreciate your help.
I did install the update files from 2005, with the PC monitor still no dice seeing the desktop, "out of range" still persist. Anyway, it is a chinese made and branded monitor so I would point my finger to the monitor, it is btw a 720p native monitor. I could not even get to the desktop with extensions loaded only up to startup screen where you see extensions icons on the lower left.
Anyway, I did put in the 23" alu ACD, and voila I have the MacOS9 desktop no sweat. That means the drivers are working, ATI extension icon on the upper right of the menu bar can be seen, so that means ATI extensions are loaded, except the ATI Graphic Acceleration is grayed out.
Next I would be trying is a DVI connection instead of VGA. If all goes well I will be in Cloud OS9.