95 is shell built on top of DOS

That's Windows 3.x. Windows 95 is basically a marriage of DOS and the Windows system.

95 has some plug-n-play capabilites and user friendliness, although maybe less than 98 or XP.

Each version of Windows after Win95 got less and less user-friendly, though the plug&play capabilities did get better.

In terms of a computer for home use in year 2008, I would not recommned either 95 or 2000 (nor NT nor ME).

It all depends on what you want to do and as a consequence which programs you need/want to use. I'm still fine with my Win95 box for most tasks.

By the way, 2000 is XP minus ClearType, minus Fisher Price theme and weaker HyperThreading support. It isn't that much different.

If the hardware is older, think about 98SE.

Win98SE has integrated IE, and is more annoying to use.

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