how exactly does this all work? I can't for the life of me figure out how to get classic apps to run. When I go into classic config there's nothing there in the little window.
Well you need either have OS 9 installed on another partition or have the OS 9 Classic drop in.
In the Classic control panel, you can set Classic mode to run on startup or only when an app needing it is run. The key thing is that the app you want to run has to be usable in OS 9. If it's too old of an app, it won't work.
if you have an intel mac, you're SOL as apple dropped support for it there.
if you're running on a powerpc machine, you can still run classic, but if you're machine shipped with tiger you'll need an OS 9 install disc. IIRC, panther and previous versions os OS X shipped with classic.