Failsafe I imagine is something like Safemode in Windows, but better of course
If, perhaps your linux is somehow corrupt, and it can't fully boot, perhaps failsafe uses the dafault kernel and boots into Root or something. Again, not really sure about that... just a guess by the fact that I have never seen it, nor needed it, and the name implies something having to do with failure, and safety
. And Windows 2 could be something that boots to the same as Windows, but for some reason there are two entries in the lilo config file. You could always check to see where the Windows 2 is directed in comparison to Windows. It may be that you have 2 ntfs partitions, but I don't know why you would want to boot something that isnt bootable
And Yes, you can safely remove the options for the ram and multi processor if you want. Same with Windows 2, if it doesn't look like it leads to anything. I guess you could select it and try to boot and see what happens.