In that case, does the laptop have a floppy disk drive? I'm guessing it does...
You'll need to make a boot up disc.
Place a blank floppy disk into the drive and right click in My Computer the A: drive (what ever drive the floppy disk is), and select to format it.
Inside the menu somewhere (its slightly different with XP so can't really specifiy), there should be an option to Create a Boot Up Disk, or Start Up Disk.
Follow through instructions after selecting this, and then after its done, the floppy should have everything to boot up the computer in some way after restarting,
so process to restart.
Now its restarted, and the floppy is loaded, you'll need to tell the computer to first format the main hard drive (i insist you do this)
Do this by typing:
format x: (x being the hard drive it wants to be placed on).
After you've accepted it, and thats done, proceed to type this:
x:setup (x being the cd rom drive Windows 95 is placed in)
Then simply follow the instructions, and you should be set.
I hope this helps