No you can upgrade to Win98 using a Win98 boot floppy. But anyway, I think I have a solution. Delete win.com and try installing again. I believe it's win.com, maybe it was win.ini, but I'm pretty certain win.com. Deleting this will delete your old key.
Then you can reinstall Win95 from the CD, when it ask if you want to install to a different directory like Widows.000, change it back to Windows. It should do the install just like a new install, only without deleting the other directories.
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