NO, when you install classic, you install a full version of OS 9. So as long as you have your software restore CD's, your good to go. And, yes Classic (OS 9) is an emulator under OS X, just like Virtual PC.
Classic is not an emulator. It is run as a program under OS X. An emulator like Virtual PC emulates the Pentium processor and runs DOS/Windows on that. Classic runs as a program within OS X but it still uses the PPC processor to run programs.
Under OS 7 through 9 with the introduction of the PPC processor older 68K code WAS emulated.
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