When I started, my first task was the install the operating system of my choice on a machine that was handed to me. Something pretty Unix-like was mandated because I had to get our full development environment up and running. Dual boot is not suggested, but at some point I'll probably install vmware...
Out of curiousity, what reason was given by the programmers for installing Windows 95? While breaking everything is pretty bad, if the software that they were developing actually had to run on Windows 95, then they are justified in wanting an install around.
I'm remembering a situation years ago where I had constant issues with administrators who didn't want me to have Access 2.0 installed when my job was specifically developing Access applications that had to be able to run at other sites on Windows 3.1. When silly sysadmins came in direct conflict with my job description and my manager's direct orders, the sysadmins lost. (OTOH I did manage to convince the sysadmins that this was a justified change on my part...)
Cheers,
Ben