I don't know about the screen you were seeing...but you will need to create or download ( www.bootdisk.com ) a bootdisk suitable for your operating system needs. You will need to add the cd-rom drivers to the boot disk to be able to use the cd-rom. If you d'load a boot disk make sure it is for your O/S and I believe they offer ones with generic CD-rom support. I would suggest booting with the disk and using the f/disk command to see how the HD is set up and determine if you want to enable FAT32 (check your Win 95 disc to see what version you have because the earlier versions only allow for FAT16-I think 95c allows for FAT32). When you format the HD you need to add the /s command to the end of format like this format c: /s this will make the HD bootable. After the format you will need to restart the computer and then enter the BIOS to see if & how the HD is detected as well as the CD-ROM.
This site should help a bit http://www.cyberwalker.net/columns/jul99/2907.html
Let us know if you need more help. Wait a few to see if the others suggest something more or different for your particular situation.