Use MOL to run old OS's on new hardware?

Is it possible to use MOL to virtulize an older Mac OS than will 
natively run on my machine?
That is, I have an iBook G3 800MHz, and I have a Mac OS 8.5 install CD.  
Mac 8.5 will not install (the CD will not even boot on) my iBook, but I 
would like to be able to use it for some ancient software I have.

MOL should be capable of running it, but I was unable to get MOL to boot 
the CD.

Is it possible to run this older OS on my new(er) hardware?

If so, does OS 8.5 need a ROM image?  The CD has a ROM image on it, but 
I have a Performa 6400/180 if I really need to grab one.  OS 8.5 seems 
to be right on the line as far as ROM's go.

Also (off topic), can MOL virtulize any of the BSD's?

Thanks!  :-)