This copy of Windows 95 is running inside Dosbox Turbo, a DOS emulator for Android. The Nook Touch in question has of course been hacked to get at the underlying Android, and the hacker has also installed the fast refresh hack.
He describes this project as being slow and somewhat difficult to use. It's also unstable, with the video ending at a grey screen of death.
If you're interested, this Youtube user has also uploaded videos of the NT running several different emulators including Sega Genesis, Gameboy, Super Nintendo, and Playstation. They're a lot f fun to watch.