WinLinux installs to a Fat16 or 32 drive, not NTFS.
It has to be readable by Win9x to write to the folder C:\Linux or D:\Linux . It mentions on their site that it doesnt work with NT type OS's. The reason for this is Win9x stores some of the files needed by the installer in a different part of the registry. The installer might run but not find any hardware for your system. It looks at your current configuration and tries to match it from a set of lists in one of the folders it unpacks to your C:\Linux\winlinux directory. If it cannot find what it needs you would have to "force" most if not all your settings in the final phase of the install process. Make sure you can connect to the net at that point because it wont finish without registering for support.
IF it was able to boot I doubt that it could function as anything other than a console. Because the correct modules wouldnt be loaded to the kernel at boot. If you knew exactly all the hardware in your system you might be able to "force" all the settings at the final stage. I boot mine from a DOS boot floppy instead of Lilo ( winME
I cannot comment on Phat Linux I never installed it.
Without having a Win9x based OS, WinLinux would be a lot of trouble to install even though it would only use about 500 megs.