msdos.sys is non-existent or inaccessible
Details
Configuring VM fails at 97%.
Converter logs indicate an inaccessible or non-existant MSDOS.SYS file.
Solution
On most NT based systems, the msdos.sys file exist but is empty. You can easily recreate the MSDOS.SYS file. Reference Microsoft KB 118579. The require entries are as follows:
HostWinBootDrv=Root of Boot Drive
Default: C
Purpose: Specifies the location for the root of the boot drive.
UninstallDir=Root of Boot Drive Default: C
Purpose: Specifies the location of the W95undo.dat and W95undo.ini files. These files are necessary to uninstall Windows 95.
WinBootDir=Windows Folder
Default: Folder specified during Setup (for example, C:\Windows) Purpose: Lists the location of the necessary files for booting.
WinDir=Windows Folder
Default: Folder specified during Setup (for example, C:\Windows)
Purpose: Lists the location of the Windows 95 folder specified during Setup.
Note: Some NT based systems use the WINNT dir instead of C:\Windows