|Yes. You need to install Windows 95 first, then Windows 7.|
DOS-based operating systems always need to be installed first because they require use of the "C:" drive partition.
Installing more than one operating system on your computer
Also, if you want to be able to see files on the Win7 partition while you are running Windows 95, you need to format both partitions as FAT. Windows 95 and other DOS-based OS can not "see" NTFS.