Well things were working just fine until I started thinking...

[raingod42]

one is format the HD, lose all info and start again.
second (which sound more like what you're looking for), is starting to install againa nd setting the windows dir in a diffrent location (c:\windows2 instead of c:\windows for example). either way i wouldn't reinstall w95 if you puyt a gun up to my head. after clean installs i PORMISE it'll work better then 95 (they both suck, but 98 sucks less).
before you do any of this stuff - how long has it been since you defragged? try defragging - it might take care of ALL your problems.
good luck!