ok, I see your problem. You are trying to fdisk/format while in windows, STILL. Read his previous post, you cant do this in windows if you are wanting a clean install. put the Cd (win95) in your cdrom drive. If it starts to autorun, kill it. You cd in the drive ONLY. Restart the computer with the cd in the drive. You should see something like press a key to boot from cd. Choose that option (depending on version). Also, try creating a boot disk the following way:
In Windows 95, Microsoft has created a new method of creating a bootable recovery diskette. Unfortunately, however, this diskette does not support CD-ROM support and is missing a few recommended files. To do this, click Start / Settings / Control Panel / double-click the Add Remove programs icon / click the Startup Disk and create disk.
No, before formating or anything you'll need to add the atapi drivers. One thing you may want to try doing is booting on you cdrom atapi disk. Ah ****, just read this link and follow its instructions...