While Windows 95 is supported under Virtual PC 2004 – there are still a few common problems to be aware of when trying to install it.
Firstly – a lot of people forget that the Windows 95 CD is not actually bootable. This means that you will need to dig up the old boot floppy and use it to install Windows 95.
Secondly – most Windows 95 installation CDs do not have drivers for our emulated motherboard (Intel 440BX). The result of this is that halfway through installation Windows 95 will start complaining that it can’t access the CD-ROM. The easiest way to deal with this is to not install off of the CD. Instead you should use the boot floppy to FDISK and format the hard disk. You can then copy the ‘WIN95′ directory off of the CD and on to the hard disk and run ‘SETUP.EXE’ from the hard disk.
After installation you can download and install the Intel 440BX drivers from http://downloadfinder.intel.com/scripts-df-external/filter_results.aspx?strTypes=all&ProductID=816&OSFullName=Windows*+95&lang=eng&strOSs=15&submit=Go%21