With System 6.0.x, it was not alright to have two different System Folders, even if the names of the folders were different.
With System 7.x, it is possible to have multiple System Folders on a volume, as long as one folder is the "blessed" System Folder (that is, the blessed folder has a small Macintosh icon inside the icon of the folder). However, Apple Computer, Inc. still recommends using only one System Folder per volume.Any other situation is entered at your own risk. Apple Assistance Phone representatives will not help you manage multiple System Folders on one volume during troubleshooting.