I removed your email address to prevent SPAM, since spam bots come on this and many other sites, and look around for email addresses to spam.
(Even if you already get it, and it gets filtered correctly, you will just end up getting more, I know, I've been there)
Anyways, did this computer once have Windows 3.11 on it?
Most 3.11 computers are not capible of running Windows 98. Many 3.11 computers were also 16 bit, though Windows 3.0 supported 32 bit systems. Its like how, today, we have 64 bit systems, and we have a 64 bit version of nearly every OS, but, still, the majority of the world continues to run the 32 bit system...
Windows 95 is 32 bit only, so, that means that the computer is 32 bit. However, you should post your system requirements. Windows 98, compared to 95, is a resource hog, and will take up a lot more.
Heck, a computer that old can hardly do anything without crashing. You might almost consider a new computer, but, obviously, there is a reason you must still be using the old computer, and thus, we shall continue to troubleshoot the problem.
Also, Does the computer have a CD drive? Do you have the original Windows 95 floppy disks ("Insert Disk 1 and press OK" tells me that you originally installed Windows 95 with a floppy, not a CD)