VDMS is a dead project and is limited by hugely imperfect NTVDM, which is missing all together from any 64 bit versions of Windows. I'm not even sure that VDMS will work in Vista. You will also be subject to speed issues. DOSBox is to only reasonable solution for DOS (and Win 3x, now that it can be installed in DOSBox) games on modern PCs.
The difficulty is with the Win9x only games. If you can't get them to run with the usual tools, like Compatibility Mode, you are stuck with using an emulator/virtualizer, but you still need Windows 9x to install in it. Audio quality in these usually leaves a lot to be desired, compared to DOSBox's. Note that Windows 95 can be run in some developer builds of DOSBox, even though it is not officially supported.
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