There is a bug in Doom95 which prevents demo recording: as soon as you get into the game, Doom95 dumps you back to the desktop with an "I_Error says: demo recorded". I hax0red Doom95's doomlnch.dll and now demo recording works as it is supposed to.
Credits:
Base:
doomlnch.dll that comes with Doom95
Build time:
Editor(s) used:
Disc Sector Editor by David Stang
Bugs:
Incompatible with zDoom (doh) The fix doesn't affect gameplay in any way that I am aware of (extensively tested since 1998). Email me if it does.