I never saw IE or Windows running on Novell Netware. It was a server operating system. What you’re saying is akin to saying you can create a windows shell from inside linux.
The Netware backend server was it's own OS, IIRC. However on the client side, you had MS-DOS and Windows Netware clients to login to the Novell server and access the associated shared resources.
I think what they mean is the Netware login dialogue, on Windows. My classmate hacked our high school's network, getting him thrown out of class. I'm pretty sure he used a different method, though. He got a job working for the school. This was in the mid 90s.
This was in Stockholm, Sweden. I'm not sure how it was done, but I imagine it involved the SAM file and Jack the Ripper or something along those lines.