I tried to install Windows 95 in Microsoft Virtual PC 2007 x64. Installation worked fine, but after first restart, it sais: Windows Protection error. You need to restart your computer. I think this problem appears because of 2.1 GHz processor limit. But how to solve the problem? Specs of VM: Intel Core i3 3220 3.30 GHz 64MB RAM 350MB HDD Sound Blaster 16
Windows 95 works without any problems in Virtual PC on my laptop which have Intel Pentium P6200 2.13 GHz processor.
Try using VMWare, set the workstation compatibility to an earlier version, I've installed Windows 95 with my CPU running @ 4.8GHz in VMWare