It's compeltely possible...
Although the chances of you running software that, in it's latest incarnation, doesnt run on Panther/Tiger is slim. I'd check with the manufactuer to see if there' an updated version for Panther/Tiger and even then, it's rare that something that runs on Jaguar won't run on later systems (even if it's only listed as compatible with Jaguar).
To do this you need to split your physical hard drive into two seperate hard drives, or at least thats the way it's seen by the computer.
To partition your drive go to (Applications/Utilities/Disk Utility) and click your hard drive, click the partition tab and then choose a size for your drives (I'd recommend your Tiger partition be bigger if you're only using it for one or two applications - 4or 5GB should be fine- also make sure that you install none of the extra parts of Jaguar when you're intalling it to keep the install size down for what's effectively a second OS).
As this process erases your hard drive you'll need to back up your files before doing this!