There are two separate issues here, Samantha.

The first and most important is: Will your computer hardware support Windows
XP? I don't know the machine, don't know the hardware on it. Could you
please indicate what CPU you have (type and speed), how much RAM, and how
much free hard drive room? (If you don't know, then I suggest you download
and run the free utility Aida32 -- I have download and info links at
http://aumha.org/freeware.htm.)

If your hardware supports it, then you're much better off than you might
think. You can't *literally* do an upgrade install of Win XP atop Win95, but
there are two things you *can* do. First, you can use the File & Settings
Transfer wizard to export the majority of what you want to save from your
Win 95 installation, and later import it into a Win XP installation. Next,
you can use Windows 95 as a "qualifying product" to do a clean installation
of Win XP from the Win XP Upgrade Edition that you have. This is just about
as good as a full upgrade. I recommend you read these two articles by MS-MVP
Gary Woodruff:

Upgrading to Windows XP
http://aumha.org/win5/a/xpupgrad.htm

File and Settings Transfer Wizard
http://aumha.org/win5/a/fast.htm

You can also find support articles and information on upgrades to Win XP,
including information on what hardware works with it, here:
http://aumha.org/win5/kbwin2k.htm