lolifox provides a customized version of Mozilla's Firefox made for the Anime-Community.
What's the difference?
lolifox offers a default collection of the most important bookmarks everyone should know of.
Besides that, it extends the browser with better design for some tasks like FTP-/Gopher-index display (which looks horrible in Firefox) and other custom branding.
Planned for the future are native FTP-support, a aniDB-client and other nice things.
Is it compatible to Firefox?
lolifox is fully compatible to Firefox. So even that it is a total conversion and completly decoupled from Firefox, all plugins, extentions and themes can be used in lolifox. (Compatible version as of lf0.2.5-dev27: Firefox 2.0)
Can I run both browsers side-by-side?
Yes, you can.lolifox installs into it's own directory and has it's own configuration, so that both don't interfere with each other.
Can I import the bookmarks from Firefox to lolifox?
Yes, you can. Export them in Firefox as a bookmarks.html and import that file again in lolifox (Bookmarks Manager).
The usage of "loli" isn't intended as use of "lolicon". The project is intended for the whole audience, not only lolicons. It's intended as "the cuteness of loli found in anime".