Yes, it does mean that: The Windows CreateProcess and LoadLibrary APIs on Windows NT before Windows 2000 and all of Windows (95, 98, and ME) will not load a DLL or EXE file made by Visual Studio 2008 (VS 9), because the PE header in the file has the required OS version field set to 5.
The error message upon attempting to load a Visual Studio 2008-generated EXE file will (be a very unfriendly modal error dialog) actually say "You need to upgrade your operating system to run this program".
I experimented with editing the field to 4. The binary will be loaded, but any use of the Visual Studio 2008 C-runtime will hang or crash the process. There are ways to get Visual Studio 2008 projects to not use their native C-runtimes, but if massive use of C++ features is important to you, this approach is not going to scale past a small application.
Visual Studio 2005 (VS 8) has most of the features of Visual Studio 2008, but it still targets early OS versions which is why at my shop we are sticking with that for the moment.