I hunted around Microsoft's site yesterday, looking for backing that
XP Upgrade will accept a Win95 CD as proof of a qualifying system. I
found the page that talks about "in place" activation, and that says
that XP Upgrade will not upgrade a Win95 system. No surprise there.
I also found this page:
http://www.microsoft.com/windowsxp/home/upgrading/matrix.mspx which
would seem to say what defines a "qualifying system". It says NO for
Win95.
I suppose that page could have been put together by a clueless person
who didn't realize that a Win 95 CD would be accepted as a "qualifying
system" even though that system can't be upgraded in place. Or could
Microsoft have changed their policy?
In any case, it's always been try that any machine that's been running
Win95 is probably old enough that it won't be happy trying to run XP.