Using system picker or system switcher you can just install 2 
operating system on the same hard disk and switch between them 
whenever you like...
My personal experience with mac os 8 on the 68040 is that it was not 
very stable. I did like it on the ppc macs though... For the ppc's it 
was kind of a relieve after all the crashes we went through in the 
system 7 era.
I once heard that in the darkest days of Apple's history (somewhere 
between 7.5 and 7.5.2) they had only 6 people or so working on the 
operating system...
They started to get their act together again after that, and build 
System 7.5.3, which was a major blessing back then...
It took them another 3 or 4 years to reach the pre 1990 OS stability...

>
>1. OS 8.1 on the Hard Drive.
>
>2. System 7.1 on a RAM disk.  You could have it on a CD (which you would
>burn after a full installation of the OS and whatever extensions, control,
>panels, drivers etc. that you want to run) and copy it to your RAM disk and
>restart from your RAM disk (assuming you have an external CD ROM).
>

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