I had the same sort of problem installing to a 486dx with a 1.2 GB hard drive. What I ended up doing was starting up via a bootdisk and formatting the hard drive. Once I had done that, I simply copied the necessary files (located in the Win95 directory of the CD-ROM) onto a folder on the hard drive. Once the files were copied (which took a while because of the slow speed of the computer and CD-ROM drive), I installed Windows from the hard drive and had no problem from that point on.