Best photoshop version for 9600/350?

Well, it depends.

For Mac OS 9.1, you can use Photoshop 7.0.1. Photoshop 6.0 will run on Mac OS 8.5 to 9.0, and 5.5 will work on Mac OS 7.6-8.1 (5.0 will run on System 7.5.x). This pretty much covers the range of OSes that your machine will run (your Mach V 9600/350, I presume?)

Here's where I got this: http://en.wikipedia.org/wiki/Adobe_Photoshop_version_history#Version_compatibility

I hope this helps!

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Correct! Once I get it working it'll be hopefully used for photoshop and some classic gaming.

I haven't actually decided what version of MacOS I want to run as my primary... I haven't used OS 9 or earlier in about a decade. I've been on OS X beta and up since I could on my beige G3 desktop (sluggish, but I was in high school so having the bleedingest edge OS was the cat's meow!). So I'm having to relearn everything I used to know.

OS 9.1 for sure on the 9600 - you'll have enough RAM; and Photoshop 7 alongside

Just gave me nightmares about dualbooting windows 95 and 98 back in the day to use photoshop 6(more memory available) and photoshop 7 trial (req. win 98).

I use PS6 on OS 8.6, G3 B&W 400. 

Thanks guys. I'm now on the hunt for PS 7.0.1 for Mac!