Conflict between 32-bit and compatibility mode drivers.

Adjusted points to 150

Make sure you aren't loading a CDROM or other IDE driver in config.sys.

Try this bootup your Win95 in safe mode then remove the device from device manager.  Then reboot the PC  let Win95 go in to normal mode.  It should detect the new hareware, at this time install the driver from disk or CD.  That should take care your problem, if not reject my answer.

Win95/98 does not have correct driver for newer ALI chipset motherboard, since you're using ALI removing the IDE controller might not solve your problem since Win95 would detect it as standard IDE controller.  You might have to remove the controller then reload the drive that comes with your motherboard.  Or check with your motherboard manufacturer's site to see if there's any updates.

I removed the Standard IDE Controller, the only item of the four under Hard Disk Controllers that did not have the exclamation point.  (And the only one Windows would let me remove.)  Rebooting brought back all the same conflicts.  The practical effect of the problem is to knock out my CD-ROM, at least I think so.  It was gone again today. I can always get it back by editing the registry, as instructed by tech support, but I haven't been able to make it stick. I went into config. sys, as suggested by another, and edited it.  My D:\ stayed it on reboot, instead of disappearing as before and the conflicts are gone. So I hope my main problem is corrected. Anyway, thanks for the suggestion.  I'm not confident this is over yet.

cdouglass -
Your suggestion seems to be the answer.  I am not sure how to make certain you get the credit.  I will await a message from the exchange, having just rejected the first suggestion.