Don't forget - If you do reformat, then you are ieally going to have to reinstall drivers. Expand the device manager now to show all of the bits and pieces and download all of your needed drivers to CD or similar. (Vid, soundcard, etc.etc. With 95 there ain't, or probably ain't, any USB issues) It is much easier to be prepared beforehand, than to have to wing it afterwards.
Catch is that if you reformat, it will possibly run so much quicker than before, that you might want to keep it!
Conan