I have also tri-partitioned disks: one partition for system and apps, one for storage, and one for short-term storage/ scratch use. This sort of setup makes it nice and easy to use for Hotline downloads and such that you want either to archive or else to install and then jettison, or for working with large audio files and the like. Keeps things neat and tidy for such uses. However, this is not the reason for the small partitions. The fact is that there is a recommended drive limitation of less than 8GB for any system installation on a Wallstreet, just as there is also on beige G3s of the same era. If you system files go beyond the 8GB limit, you get problems. LEM even recommends a 7GB partition, just to be sure!
As for OSX and OS9, I know from experience that X.3 will run reasonably well on even a 266MHz Wallstreet (with XPostFacto), so I would not feel bound to stick with X.2, which is actually slower as well as less capable than X.3. The G4 should also give X.anything a nice boost, although sadly, as there's not much that can be done for the graphics, it is hard to see how the original outlay for the G4 was a good financial decision for the first owner. Her loss, however, is your gain: maybe with the G4, you might want to give X.4 a try. Or just flog the G4 processor on eBay and buy a Pismo if what you want is a G3 PowerBook for OSX work. There is a world of difference there, though you'll not notice much difference between a Pismo and a Wallstreet in OS9.
My Wallstreet runs OS9, as I have better things to run OSX on, and as I can't tolerate the loss of localtalk ports etc. It is a very stable and able OS9 machine. Although it now is mostly used for niche purposes (e.g., it runs my copy of Network Assistant for the "lab"), it was my daily laptop for several years and, as such, was used heavily, and never skipped a beat — with the exception of the batteries, which can be a real PITA. But I have a lots of respect for these machines, just as others do for the Pismo.
As for OSX and OS9, I know from experience that X.3 will run reasonably well on even a 266MHz Wallstreet (with XPostFacto), so I would not feel bound to stick with X.2, which is actually slower as well as less capable than X.3. The G4 should also give X.anything a nice boost, although sadly, as there's not much that can be done for the graphics, it is hard to see how the original outlay for the G4 was a good financial decision for the first owner. Her loss, however, is your gain: maybe with the G4, you might want to give X.4 a try. Or just flog the G4 processor on eBay and buy a Pismo if what you want is a G3 PowerBook for OSX work. There is a world of difference there, though you'll not notice much difference between a Pismo and a Wallstreet in OS9.
My Wallstreet runs OS9, as I have better things to run OSX on, and as I can't tolerate the loss of localtalk ports etc. It is a very stable and able OS9 machine. Although it now is mostly used for niche purposes (e.g., it runs my copy of Network Assistant for the "lab"), it was my daily laptop for several years and, as such, was used heavily, and never skipped a beat — with the exception of the batteries, which can be a real PITA. But I have a lots of respect for these machines, just as others do for the Pismo.