OK so you heeded my warning. Good. You have to install Disk
   Compression if you didn't already do so. Before running DriveSpace,
   de-fragment the hard drive you're placing the compressed volume on.
   This will maximize the space the compressed volume can take.
   
   Then, bring up properties of the target hard drive. In the Compression
   tab, select the option to create a new compressed volume. This will
   run DriveSpace, create the new .CVF file, and tell you to re-boot your
   computer. Much quicker.
   
   If you plan to use DriveSpace this way, you should do so right after
   you complete your Win95 installation, and create a compressed volume
   with all the remaining space. This will maximize the drive space that
   gets compressed, and keep your Win95 installation uncompressed, ready
   to re-install if necessary. Maybe leave about 100 MB uncompressed for
   the Program Files folder, which always goes on your booting drive.
   

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