Alrighty! I got a windows 95 boot CD and went through a long process to install it into my laptop's microsoft virtual PC 2007 (the installation was tough at first because it required a floppy disk to boot up the setup CD, and laptops don't come with floppy disk drives. So I tried to use the floppy disk image mount function of virtual PC, but that didn't work out. In the end, I gave up with the floppy disk image and just downloaded a Win95a boot CD image and just used that to prepare the virtual harddrive, then switched the image to the setup CD after the virtual harddrive was properly formatted. The instructions for the general process can be found here:
http://ben.versionzero.org/wiki/Install ... Virtual_PC). Then, I moved the virtual harddrive into an XP computer which had virtual PC 2004, so I could install the handy virtual PC additions for 95, which included additional drivers and other stuff, and then moved it back to my vista laptop (i'm not sure this is necessary, but I might as well mention it). Then I got Mechwarriors 2 Mercenaries Titanium and installed it into the windows 95 virtual PC. The game runs at 640x480 resolution without any patches (Mercs Titanium automatically comes with the mercs 1.1 patch); I haven't tested the jumpjets and all of those other known bugs associated with the newer and faster computers, but I was able to play some other windows 95 games without any problems once I was in the game (starting the games may require no-CD cracks in order to run though *cough* Age of Empires II *cough*).
Sadly, I couldn't get my Enhanced Direct 3D and 3D Positional Sound edition running, but I think I know the problem. The virtual PC cannot emulate the 3D HARDWARE acceleration that the edition requires in win95 mode. I confirmed this because when I installed Mercs Titanium with only SOFTWARE acceleration, it works perfectly; but when I install it using the 3D HARDWARE acceleration option, the environment outside my mech is all white when I enter a mission--the exact same result I had when I played my nightmare edition in win95 mode in the virtual PC.
Concluding thoughts: the white environment bug, and possibly the win95 version of the nightmare (enhanced D3D) editions can be fixed if software is developed that can emulate 3D HARDWARE acceleration. I'll leave that to any programmers who want to take up the challenge. Also, because it is windows 95 that is running in the virtual PC, you can probably play most, if not all, of the windows 95 compatible version of any [mechwarrior] game--don't quote me on that though, since I didn't try that...yet. And lastly, this is for single player only. I suppose that the modified NetMechDOS method works for online play on a vista computer.
Note to people who are interested in this method: A brand new FULL EDITION windows 95 installation CD can be easily and cheaply bought from some sellers on eBay.