Scott's memory is excellent -- yes, 3.5e was released as a free download, along with an all-important updater that fixes several bugs under OS8/9 (probably including yours). I downloaded 3.5e for my sister a year or so ago, and she was quite happy.

A quick search suggests that Corel has pulled it from their site, and forced others to do so as well. Perhaps you'll have success locating it with a more thorough search than the one I just ran.