XPostFacto is your
only way to get OS X onto those machines, so it would be to your advantage not to dismiss the software so quickly.
Sonnet Technologies also has an OS X installer for unsupported machines for Panther and below, but I think it's light years behind XPostFacto, so I won't even recommend it.
XPostFacto doesn't have to be in any specific place on the hard drive, but if you're just firing up XPostFacto and giving it a go, you're going about it all wrong. There are things you need to make sure are in place, like nixgeek said -- you must place OS X in a certain partition on the hard drive, you must "play" with certain settings in XPostFacto (timing values, output/input devices, cache settings, etc.) and you must, above all, have patience (chances are OS X won't install the first time... or the second... but it will eventually after tweaking XPostFacto's settings). After all, these machines were never meant to run OS X and, as such, the hardware has to be "tricked" into running OS X, and OS X itself must be "tricked" into thinking it's installing on supported hardware.
Read the FAQs and follow the instructions on the XPostFacto page
to a tee. This is one application that, given you've taken the time to follow the instructions and understand what you're doing, will be able to load OS X almost 100% of the time.
http://eshop.macsales.com/OSXCenter/XPostFacto/Framework.cfm?page=XPostFacto3.html
I know that's a lengthy page to read, but it would be to your advantage to do so, making notes while reading that pertain to your setup. It's not as hard as it seems at first glance, and once you find the correct balance of settings, it's pretty much a "click once and watch it go" procedure.
I've had considerable experience with XpostFacto and a few unsupported machines, so if you have any specific hangups or need some help walking through the process, please don't hesitate to ask here.