Running classic off an ipod?

I've never heard of anyone trying this, so I'm not sure if it'll work.

What you'd need to do to try is to make sure FireWire Disk mode is enabled on your iPod. Once you're sure of this, insert the OS 9.2 cd into your cd-rom drive, and run the installer. Your computer should restart, and it ought to allow you to choose your iPod as the destination disk for the install. If it does, run the installer.
OS 9 will take up a gig or two of your iPod's hard drive space.

If it installs, then try selecting it as the startup disk. If your computer allows you to use the iPod as the startup disk, then you're good to go - just select OS X as the startup disk again, and then delete the Classic system folder from your computer's hard drive. Leave your iPod plugged in and restart. OS X ought to look for a Classic system folder and find it on your iPod during its startup process.

Then, test opening Classic by selecting a Classic app to open.

You should make you've backed up all your music, contacts, and calendars, notes, etc that you have on your iPod before you do this in case it wipes the iPod for some reason.