Windows 95 uses weak encryption for the password list (.pwl) file used when password caching is enabled, which allows local users to gain privileges by decrypting the passwords.
http://www.iss.net/security_center/static/71.php
http://support.microsoft.com/support/kb/articles/q140/5/57.asp
http://marc.info/?l=ntbugtraq&m=88540877601866&w=2