Mac OS X 10.2.7: System Folder Dimmed in Classic Preferences, "No System Folder" Alert

Symptom

• The Mac OS 9 System Folder is dimmed in Classic preferences.
  
• This alert appears when starting Classic: "Classic Startup found no System Folder on the boot volume from which to start Classic."

This can happen when the user account has limited access.


Solution

Update to Mac OS X 10.2.8 or later.

As a workaround, follow these steps:

1. If System Preferences is open, quit it.
   
2. From the Apple menu, choose System Preferences.
   
3. From the View menu, choose Classic.
   
4. Select the desired System Folder, then quit System Preferences.