If it’s stuck on boot, you might have to adjust the hdd drive mount settings.
You can get Working (empty) hdd image files and their appropriate settings here: http://magicbox.imejl.sk/forums/topic/windows-95/page/2/#post-7967
Just check the mount commands you’re using against the settings stored in the zip. Only if they’re right, and it’s still not working, you should try another image.
Mounting an iso file in Dosbox will not work at all. The way Win95 runs in Dosbox is rather a low-level approach, direct boot of the OS, so any other mount commands are ignored/have no effect.
A good workaround is to copy the iso to a big secondary hdd image, then mount that image as drive D, install Virtual CloneDrive in Win95, and mount the iso as virtual CD-ROM in you Win95 installation.