have you checked to see what programs are running in the background by pressing ctrl+alt+del at the same time.
it may be that some are running and slowing your pc down.
Have you tried the usual scandisk/defrag etc.
Does your mouse/keyboard rely on the drivers in win95 or have they their own drivers?
win386.swp is you swop file (virtual memory) can you limit this manually, I suspect you have it set to auto. Try using the search option on this site to look foe swop fle/virtual memory setting, I'm sure it has to be a percentage of your hard drive something like a quarter or a third (I'm sure someone will correct this if I wrong).
What size is your hard drive and how much memory do you have.