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Originally Posted by Quoth
I think a golfball or daisywheel could do at most 96 characters
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That would mean at least 2 non-ASCII characters, as SP and DEL have no character on the wheel associated with them. US typewheels usually used those for ¢ and ½.
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MS bought in DOS from a company that reverse engineered it from CP/M 86
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That is an urban legend, utterly disproven in court of law.