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This is a humorous parody of the recent Microsoft Windows 8 ads featuring Windows 1.01! It was made using DOSBox, CamStuido, and VirtualDub.
The DOS applications shown include Microsoft's Piano (bundled with their 1,983 busmouse driver), Harvard Graphics for DOS 2.10, Lotus 1-2-3 for DOS, and Pkunzip JR. Apparently certain very well behaved DOS applications such as Pkunzip JR will actually multitask in separate command windows.
The star wars animation is from the telnet site towel.blinkenlights.nl.