Another trick that works for me in Win95 is as follows. You don't need any new software.
Make the folder on the disk, then copy the CD contents there. Ensure you get all the files, including the hidden/system files. This is most easily done bytelling Windows Explorer options to show hidden/system files; if you can see them, then you can drag and drop them with the regular files.
Install the program from the disk folder, instead of the CD.
When you're ready to run the program/game, open Windows Explorer and navigate down to the folder where the CD copy is located. That sets the "DOS pointer" (I'm not sure of the correct term) for that drive (D: or whatever) to the correct folder on the drive, allowing the game to find it and see it as the CD. Close Windows Explorer and run your program/game.
If you skip this last step, the program will go to the correct drive but won't find the subfolder and will say "CD not found" or something similar.
I don't know why this works. I assume it is left over from the days of DOS, where if you changed to a subdirectory, then went to another drive, and came back to the first drive, you would still be in the subdirectory.
Good fortune,
Don