I have to second, third or fourth agree (I lost track) on the idea (and near need) of using large drives without having to shell out the money (and the resulting "be damn careful as data loss can happen" warnings) for the Intech Disk SpeedTools driver.
Especially with the move to SSDs happening all over, not to mention replacement mechanical disk drives, all of which are going to get (if not already) impossible to use because all are larger than that which Drive Setup can see and use. So you are stuck with not being able to use the whole drive.
I ran into this recently after I upgraded the hard drive in my iMac G4 to a 500GB and the MacOS 9 install would only let me see about 130GB of the drive. I had to set up an OSX partition, install OSX Tiger, and then initialize the rest of the drive from there. I set up two 190GB partitions and then a smaller one of whatever space was leftover, and I can access all of them from OS9. It took the better part of a weekend to figure this all out, but I got it working.
Part of it was that I couldn't do a fresh install of MacOS9 Lives - the Drive Setup app would only let me initialize my freshly partitioned drive. So what I had to do was launch into Tiger and then use Disk Utility to 'Restore' the disk image off the MacOS9 Lives CD.