You sure about win 7 32 bit not supporting 16 bit code, As my quick basic Proffessional runs fine on win 7. And so far all the win 95 and win 98 programs that I've installed run fine in compatability mode. BUT not so for Win 7 64 bit (except high end version runing a virtual win XP 32 bit).
Added - were talking 20+ year old programs work under win 7 32 bit.
Clarification: the 16-bit WINDOWS support was officially dropped, even for Win32, starting with Vista. DOS stuff still goes through the same compatability layer it always did, as of NT/XP.