MacOS Guest on MacOS Host (stop laughing)

That is not pretty simple!

Mac OS 9 only runs on a Mac with a PowerPC processor.
Parallels supports only operating systems that run on an Intel/AMD processor.
Therefore it's very unlikely that Parallels will make it possible to run Mac OS 9 in a Parallels VM .

You can however try SheepShaver

More information: Run MacOS 9 on an Intel Mac

Good luck.

 

Then check Microsoft Vista OS restrictions regarding using it on a VM... ;-)

 

May I suggest to get some more HD space as an external drive with one or multiple partitions and consider paying a (cheap) license for SuperDuper? You won't need virtualizing OS X for such tests.

 

You're probably right, there are some kind of users who would benefit from virtualizing OS X. At the same time, there is probably no 'market' for this added capability to Parallels, only people expecting to get this for free in addition to whatever they get now for the price. Then what you're asking is demanding: it means revising / adding to Parallels Desktop for Mac such that it can emulate an Intel-equipped Apple computer and not a common Intel equipped common-PC : that is still different today, even though there is convergence through the use of more and more similar components. And finally there is the legal barrier. The legal barrier won't be lifted by Apple without extremely long and careful studies. It is most probably a fact that Apple started thinking on this question a long time before we, users of Parallels Desktop, did. If there is no positive answer today, it doesn't mean it won't come another day. Wether this discussion have any weight in this decision process, I really doubt. But it's entertaining to discuss it.

 

You can't buy "OS X for Intel". If you buy OS X 10.4 it is OS X for PowerPC. Your 'OS X disks' came with your mac, and are legal only to install on your mac - the parallels VM inside your mac, or your PC or linux box isn't a Mac.

You may be able to get a replacement, but it is a replacement for what came with your mac, NOT an off the shelf thing.

When 10.5 comes out, you will be able to purchase "OS X for Intel". But it is still only for actual Macs.