This is a working clone of Super Mario Bros. (with some missing features ). It was made thanks to the VRAM buffers feature (only available in experimental builds), the game runs quite smoothly and uses the Computronics Sound Card to play music on the same computer. It loads sprites from .bmp files, levels from Tiled (a free level editor) .json file and music is in some custom format that can be converted from MIDI files. This makes the game quite easily moddable.
Unfortunately here, they only share the name and the purpose. For one, the program you've read about isn't even written in Lua, so you can't really expect it to run on OC.
The one included in OpenOS cannot, in fact, download directories recursively. Nor do any of the fancy things the other program can. When searching for what an OpenOS program does, documentation for utilities included in a Linux distribution probably won't be useful. Instead, type man programname in the OpenOS shell, or look into the program's source code (edit /bin/programname).
No, it's not possible because:
First of all, you can't upload files to a lua bios
Second of all, ISO files are just disk copies, you don't boot from them. You flash them, then you boot it from the storage device.
Third of all, how are you expecting a minecraft mod to support actual ISO files/actual operating systems?
And last, opencomputers runs on lua. If you had a bootable operating system on a ISO, it's not gonna work on a minecraft mod.
Also, the max size for OC HDD's is like 8096 kb or something, so sadly it's not possible.
Cool idea tho.