Penicillin cleared that right up the last time.
I've got Win95 running on my Libretto 50CT. It's certainly not modern hardware, but I've given it an upgrade to 32 MB RAM, and a 4 GB SSD (just a CF card with IDE adapter). I even found wireless drivers for the Orinoco WaveLAN card I yanked from a first-gen Airport base station, and it'll do 128-bit WEP. You'd be genuinely surprised how usable the web generally is with IE 5.5. No Flash or AJAX, obviously, but I've browsed around abandonware sites and downloaded games directly onto it. FilZip still supports Win95, which is convenient. It runs Office 2000 and Photoshop 3, and honestly, if the battery lasted longer than an hour or two (and Win95 didn't suck so badly accessing NT file servers), I could probably do some non-empty subset of "real work" on it.
Installing Win95 without either a floppy drive or CD-ROM drive really isn't too hard. You can copy the whole installation CD to the hard drive you're installing to (and you'll probably have plenty of space for that), and assuming the hard drive is bootable to some form of DOS, you can launch the installation that way. That's what I had to do for the Libretto, since I don't have a CD-ROM drive that will work with it.