Yes, it will work.
I'm running on Win95 OSR2 which already has FAT32
> From what I heard the new fat does not allow dos and some windows
>programs to run properly.
Not true. The FAT is invisible to DOS programs, unless they're disk
sector editors or something like that.
The only problem could be caused by long filenames, but because Yarn
was written for OS/2 first, which has always had long filenames
YARN handles them fine.
Frankie