Take 1)
Downgrade to Os 9.0.4 with no Os X install, Check.
Double click the OrangePCi icon...
...OrangePC app still hangs/computer freezes, force quit does nothing...

Take 2)
Try without virtual memory...
Double click the OrangePCi icon...
...OrangePC app still hangs/computer freezes, force quit does nothing...

Take 3)
Startup without extensions (also without virtual memory)...
Double click the OrangePCi icon...
Error "The application OrangePCi" has unexpectedly quit, because an error of type 3 occurred", computer does not freeze...

I looked up this on the apple site and found this http://docs.info.apple.com/article.html?artnum=12670
also found this helpful link
http://www.bme.unc.edu/~hope/linx/mac/dosorange.html

Appears to be either a memory or compatibility issue.

Take 4)
Startup without extensions (also with virtual memory)...
Double click the OrangePCi icon...
Error "The application OrangePCi" has unexpectedly quit, because an error of type 3 occurred", computer does not freeze...

Okay, at least the computer is not freezing to the point I have to hit the reboot button on the front.
Now, I'm thinking I could go through all the extensions and find out if one is causing this problem. Or I could somehow get the latest copy of OrangePCi...

Stay tuned...

...