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The Win95 API is pretty incomplete. That was actually a terrible OS. The oldest I'd go playing this game with anything serious is probably XP.

It can read files, write files, and allocate memory. Is there anything else you need to compile software?

Can it? Files on Windows 95 and files on most Unix-like OSes are very different things.

They're the same from the perspective of a stream of persistent bytes.

If you want "very different" then look at the record-based filesystems used in mainframes.

Do you have any recommended reading about record-based filesystems?