There's a trick to updating from OS 9.1 to 9.2.2 There's a whole lot of intermediate updates you need to do 1st believe it or not. Ridiculous. Oh hold on I'm getting confused with OS9.0 See this page from apple about the order you must follow: http://docs.info.apple.com/article.html?artnum=75288
Anyway, great news about your LW. It sounds like there could be an extension conflict there somewhere. I have heard the Fax extensions can cause problems. I should add though, if you're happy using OS 9.1 then why not stick with it. So long as it's not causing problems.