Windows 98 is now smaller than 5 MB!
Reader "xhargh" took great interested in the earlier reported story on OSNews that Windows95 can be shrunk down to under 5 MB. By using instructions from BOFH and others at irc://irc.xbetas.com/Micro95, he was able to shrink down Windows 98 until it's under 4.5MB in size. Look here for sceenshot and filelist.