Solution

The Print Shop for Max OSX comes with 2 different CD's included in the jewel case. One is Grey and is for installation on OS8 & 9 while the other is Blue and is for installation on OSX. Please make sure that you are using the OSX install cd. Once installed you should see The Print Shop under your "application" folder (not the "application mac OS9" folder). If you install from the grey cd, it will show up in the "application MAC OS9" folder and not the "application".
If you do not have 2 cd's included in the package, then you do not have the MAC OSX compatable Print Shop and it will be neccessary to run this program in classic mode.