It's been a while since I worked on Macs, but here goes. The type 3 error is an illegal instruction error. That means either there's a bug in the program, an incompatability with OS9, an extension conflict, some combination of those, or something similar. If the program works with extensions turned off, there's probably an extension conflict. Starting up with the shift key held down will boot with extensions turned off. Here (click) is an article from Apple tech support on troubleshooting extension conflicts. If it doesn't work either way, try removing it, downloading it again and reinstalling it, in case you have a corrupt file. Before going nuts on troubleshooting you should check with other Mac users and see if it works for them. They might have some first-hand advice for you.

PA