with windows95 you need to install dos first before you can run the installer which ends up replacing the dos install you do with its own dos setup (wow...yet another brilliant idea cooked up by the ms windows team

)...so as long as you have the windows95 cd (parallels can use your real physical cd/dvd drive, so you can boot off the physical windows 95 cd without having to make a iso of it) and images of the dos install floppies, simply make a win95 vm, install dos, insert the windows95 cd type d:\setup and enjoy
P.S. I just remebered that you need cd drivers for dos installed of course in order to use the cd...so rather then explain you the ordeal I went through to get the cd recognized in my dos install I'll tell you another quicker way that should work but I did not test...that way is this (and assumes you have another internet enabled windows vm properly installed already)..first in the vm where you have a properly setup and configured internet enabled windows vm, click on the floppy drive and specify a new image name in place of the one already specified (and I recomend changing the dir to your desktop or somewhere other then the default /Library/etc..etc directory, once that's done click the Recreate button and click OK on the dialog that comes up and OK on the next one that comes up, you now have a new blank floppy image...click ok on the config dialog and start the vm, once in windows go download this self extracting bootdisk image:
http://spock.uccs.edu/pub/bootdisks/bootme.exe ...once downloaded double click My Computer, right click the floppy drive select format, click format on the dialog that comes up, click ok on the dialog that comes up, click ok on the format dialog, close my computer, double click bootme.exe, click ok on the dialog that comes up, it should now quickly make the floppy since it's just a image, not a real slow floppy drive...once that's done shutdown the vm, go back to the win95 vm, click the floppy on the property sheet, change the image to the one you just used to make the bootdisk and click ok, then click boot order and change it to floppy first and click ok...start the vm, it should boot off the floppy...select boot with cd support...wait for the dos prompt to appear, above the prompt it should say what letter the cd drive was assigned, now at the prompt type x:\setup x being the drive letter assigned to the cd drive as it says in the message above the prompt...follow the prompts for installing windows 95...when it gets to the rebooting point of the install FIRST click Devices>Floppy>Disconnect so it doesn't boot off the floppy drive again...you can always reconnect it again after the installation is done...enjoy!
btw...if you only have the floppies...hopefully you have images of them already...if not see if a friend has a mac with a floppy drive, use their mac to make images of the floppies as I mentioned earlier in this thread when discussion windows2 installation...and then just use the images as I described above for the windows2 images...if no friend that can do this...go buy a cheap usb floppy drive off ebay (imation superdisk drive recommended)