for windows 95, you need to use a boot disk (windows 98 boot disk works) to fdisk and format the VM hard drive, and to "start with CD ROM support" to read the wind95/98 install disk.
download a cd iso version of a windows 98 bootdisk.
burn the 98 boot disk iso image on a cd
boot with the 98 boot disk CD and "with CD Rom support"
this should boot the VM into dos mode.
(note: look at what drive the CD rom is actually assigned, as the boot disk takes A:, and Diagnostics took D: my CD drive was E:)
create primary partition, etc.
restart, with the 98 boot disk cd again
change the CD in the drive to the windows install Disk
change to the CD ROM Drive (E: for me) "cd e:"
check CD contents "dir /w" and llok for setup.exe
laugh a gleefull laugh as windows installs
frown a sadsack frown as windows 95 client cant share files with its host