No, it just means that instead of booting MS-DOS7 from MBR you are booting from LILO.
If you don't want a thread to go off-topic don't jump in and accuse people of being 'proved wrong' when it is you, yourself, who is wrong. :-)
Windows 95 is a bit complex. While msdos is used during bootup it's not necessarily used when the O/S runs because windows 95 tries to keep in 32bit mode as much as possible (which msdos can't run in).
It's generally only for backward compatibility with 16bit dos device drivers loaded through config.sys & autoexec.bat that it has to fall back. You really notice the performance difference when this happens.
