Compressed hard Drive under Win 95

I have an Pentium 200MHz Computer with 170MB hard disk in full compressed with small disk space in Host drive which is uncompressed. The Windows 95 is corrupted. I need to re-install Windows 95 to fix, but I need to be able to boot from floppy to install CD-ROM driver. Is there a way to ghost compressed drive to a larger size hard disk so that I can uncompress hard drive?