How to install OS 9 on my PowerBook G4?
Mac OS Extended (Journaled) is an OSX extension to the older HFS+ file system. While it can be read by OS9, the journal block will be ignored. OS9 needs a HFS+ file system without journaling. Also, unstuffing on an OSX file system will not add the resource fork which is essential for OS9. The blinking folder with the question mark tells you that while the file system can be read, no bootable operating system is present.
The original Mac OS held data in two forks, the data fork and the resource fork. That was a clever way of preserving precious disk space because many UI elements could be shared by all programs and read from the operating system files. ResEdit should be included in your OS9 installation and can be used to study and change resource forks once you get the system up and running.
Dragging files on OSX dives will not produce a bootable disk. Better try to burn a DVD directly from the .toast file because this will also copy files that OSX will ignore. Then boot from that DVD and do all file copying from within that OS9 system because only then will the resource files be copied as well.