Broken folder Booting OS X 10.1

Paul Derby

When I use the control panel to change my startup disk to OS X 10.1 and do a restart, I get a broken folder icon. If I power down and power up with the OPTION key held down, I get a folder with an X in the corner and a circular arrow on the left and a right arrow on the right sides of the screen. Clicking on the right arrow results in launching OS X with no further problems. I always have to hold down the OPTION key to boot into OS X. Any ideas why I get the broken folder in this situation? I'm running OS X 10.1 installed from the full release disk, developer tools 10.1 are installed. Machine is a TiG4 Powerbook with a 48GB IBM travelstar internal drive. Drive is a single partition with both 9.2.1 and OS X installed. Any help would be appreciated.
I've solved the problem but not sure of the cause. Evidently something was wrong with the boot-blocks (or whatever controls the disk boot process) in my internal drive. After trying various popular remedies such as resetting PRAM, reseting NVRAM, etc. all to no avail this process worked:

Used Disk Copy 6.4 to clone the internal drive to an external FireWire drive.
Renamed the internal drive.
Used DiskWarrior to clean up the directory on the External FireWire drive.
Booted OS 9.2.1 on the FireWire drive.
Turned virtual memory off and rebooted to the FireWire drive.
Used Drive Setup to reinitialize the internal drive.
Used Drive Setup to reinstall the driver on the internal drive.
Used Disk Copy to clone the FireWire drive to the internal drive.
Renamed the FireWire drive.
Used DiskWarrior to clean up the directory on the internal drive.
(interesting note, after doing a clone the new drive directory has been 40-50% out of order according to DiskWarrior)
Changed Startup Disk to the internal drive OS X.
Rebooted with no problems! Unmounted the external disk.
Clicking on Entourage the first time resulted in an error message saying OS 9.2 had to be installed. I started up classic from the System Preferences and had no problems since starting Classic Programs.