http://www.98lite.nm.ru/
Really short tutorial how to create micro95 (by Xhargh):

The Basics:
* download micro95.zip and 95filelist.txt from 
  http://www.skci.com/~nevlow/
* install win95
* remove all files that are not in the 95filelist.txt
  even the hidden files + win.ini and system.ini.
  (Do not remove the files in system\vmm32\)
* remove system.dat, system.da0, user.dat, user.da0
* insert the system.ini and win.ini
* Create a new registry by running "regedit /c registry.dat"

Extras:
* To shrink the size even more, use the upx to compress
  .exe and .dll files. Use trial and error to see which
  are compressable.
* To boot from cd: http://www.heise.de/ct/Service/English.htm/99/11/206/
* To regenerate vmm32.vxd: http://www.infinisource.com/techfiles/vmm32.html
* Long filenames in Dos: http://www.odi.ch/prog/lfn/index.php

Good Luck!! :)

// Xhargh