|Fdisk only works with the hard drive, it won't affect the operation of the floppy drive.|
Sometimes windows 95 or 98 will put a drive in 'msdos compatibility mode'.and it's hard to figure out why it happened but usually the drive is physically OK--it's an OS problem. When that happens it won't show in 'my computer'.
That's different than a floppy drive that won't work from the beginning--before the OS loads. When that happens you've got a problem with the drive, its connections or maybe its bios settings. The bios default setting should work OK for the floppy configuration but you need to go back into cmos/bios setup and set the boot order to have the floppy drive as the first boot device. If the hard drive comes before the floppy in the boot order then the computer will try to boot from the hard drive, find that it can't and give an error message and stop there.
I'm thinking your floppy drive is physically OK but you're just not booting from it.
What size is the hard drive and what version of 95 are you trying to install? Assuming you have an OEM 95 cd, look at the line above where it says 'for distribution only with a new pc'. It'll start with something like '0196 part no.' or '0795 part no.' Post back what it says there. The first version of 95 wasn't fat32 capable and it'll affect how you set up the hard drive.
Also you just say it won't install the OS but it must give you some error messages. What does it say exactly?