VM is fine. That's what I'm doing, since there's no drivers for most of my hardware. Here's how you get it set up (modified from what I PMed BK_123)
...The normal install CD isn't bootable, and even if you do find a bootable one, you need to use the boot disk's prompt to copy files over and format the hard disk. The boot disk image can be obtained here. Bootdisk.Com - Free Windows Bootdisks, Free DOS boot disk
The best way to get it running temporarily on a modern machine would be through a virtual machine. I'm using virtualbox, since it runs on most OSes. There's a couple tricks to get it going, so here's some directions. The Curious Geek » Installing Windows 95 in VirtualBox
I should also add that you need to set the VM to not be able to boot from CD at all (uncheck the box in the "boot" menu) and it's also important that the boot floppy is the ONLY floppy drive. I kept having issues because I accidentally added it as a second one.
Once you do get it running, use this to set a higher resolution. VBEMP 9x Project - Universal VESA/VBE Video Display Driver
Then press right control (or whatever key the VM assigns to capture mouse) and f at the same time to go fullscreen. This doesn't add any widescreen resolutions, but you can get those through a registry hack if you really want. Personally, I just pulled out a 1280x1024 monitor.