STOP USING WINDOWS 95 AND UPGRADE!!!
Seriously though, when you are running OEM Service Release 2 (OSR2), there may not be enough free conventional memory., because buffers are being loaded into conventional memory.
You need a boot floppy with the EDIT program.
1. Boot from the floppy
2. Run Edit
3. Open the Config.sys file in the root folder of the boot drive
4. Add the following lines
DOS=HIGH,UMB
DEVICE=C:\WINDOWS\HIMEM.SYS
DEVICE=C:\WINDOWS\SETVER.EXE
DEVICE=C:\WINDOWS\IFSHLP.SYS
BUFFERS=13
5. Reboot, remember to take the boot floppy out
When a "buffers=" value is not specified in the Config.sys file, buffers are set to 23. Buffers are loaded into the High Memory Area (HMA) if space allows. Io.sys and Msdos.sys are also normally loaded into the HMA, leaving insufficient room to store 23 buffers. The buffers are therefore loaded into conventional memory, creating the low memory situation.