The 98lite 2.0 boot screen.

98lite version 2, like the previous version removes or prevents the installation of Microsoft's Internet Explorer application. The installer program integrates the clean installer, IE remover, and shell swapper all in to one program. The resulting Windows 98 installation also has some minor changes.

For starters, even if you use the 95 shell the start menu will now display "Windows 98" and a 98lite logo appears in the system properties tab.

The Windows 98 "pasty" system icons are used instead of the Windows 95 ones when using the Windows 95 shell.

Version 2 introduces the ability to use the "enhanced" shell without Internet Explorer. This is possible because the Windows 98 shell actually is capable of disabling its webby features, but Microsoft made it impossible for the regular user to disable all of them themselves.

Version 2 also introduces "Micro Lite" which cuts out even more unnecessary fluff from Windows 98, making for a relatively tiny installation.

Finally, the registered version 2 makes a number of other mandatory Windows 98 components optional.