Well I don't think the Windows 95 CD can boot like newer ones:
You must be using a PC now, so go here:
http://www.bootdisk.com/bootdisk.htm
Download the Windows 95 one listed there, either alt1 or alt2, it doesn't matter, its just a different connection to get it.
Once thats done, unzip the file using Windows unzipper also on that machine and then put these on a formatted floppy disc. To format one, just go into My Computer, right click the A drive and on the menu go to format and follow the steps.
Then place these files from the zip folder into the A drive and once thats done, take it to the other pc and boot from it. Then simply type
If not, though it seems you must have it set up to come up with that error, you might be best checking that its set to boot at startup.
Go to BIOS, (press del at bootup), now I think its the first menu, check that the Floppy Disc is set to boot before the hard drive in Boot order (or IDE)
You should now just be able to sail through the process of installation, after typing the commands to boot from the CD. Should be something like:
x:setup
x being your cd drive (could be D,E for example), which should then start it off.
Hope this helps