What I would recommend doing is the following... Take the HDD out of your DFI laptop. Put it in the Other Laptop you have and boot it up. If your CD(Win95) is bootable, then place that in the CDrom of the working machine. If it's not, you will need either an internal or external Floppy drive you can use to build a bootable floppy. The early 95 versions were not bootable, so you might have to use a floppy. External USB is prefered... you can use something like this to make a win95 bootable floppy: http://www.putergeek.com/downloads/
go down about half way, find "win95b_boot_disk.exe" then click on the image of the floppy to download. Run that From your working OS, with a floppy attached and it will create a bootable disk for you. Then you can do the following.
Boot the machine with the non working HDD in it, to the floppy on the working machine, and type the following:
format C: \s
This will add the system files to the C drive and allow you to boot to it.
Once you have finished the format, you will want to copy over all the remaining files to the C drive from the Floppy. Then edit the autoexec.bat file and take off the last line, menu and put C:\ in it's place.
Then you can access the X drive (cdrom) when you boot the disk. So, take the drive back over to your other machine, and boot it up with the CD in it. See if that works...
I'm getting more info for you too... so I'll be editing this post...