Care to elaborate on that? There are floppy disk images of Windows 95 on Winworld.
Typically though the easiest way is to boot using a Windows 95 (with CD driver) boot floppy or a Windows 98 boot floppy, copy the contents of the CD setup folder to a setup folder on the hard drive, and then run setup from the folder on your hard drive.
You can use MagicISO to make a bootable CD. Go to the Tools menu and "Make ISO from CD/DVD Rom", and then "Make Boot Image From Floppy Disk". In this case the ISO would be of a Windows 95 CD and the Boot Image from a Windows 98SE startup disk (for CD support.) But apparently a CD doesn't have to be bootable to be used during a VM setup. I am guessing that the problem is that there is no CD-ROM in the machine in question. Otherwise, why fool around with floppy disks?
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Typically though the easiest way is to boot using a Windows 95 (with CD driver) boot floppy or a Windows 98 boot floppy, copy the contents of the CD setup folder to a setup folder on the hard drive, and then run setup from the folder on your hard drive.