Ok...I fucked up...
1) I forgot one (very important) step in setting up
Ok here are the step by step instructions for playing sonic (I am getting
better at the game, but a 12 year old can still kick my ass :)
1) download the 15 disks...unzip them into a temp dir
2) run fate and uncompress the files
3) either manually (if you have msdos.sys bootgui set to 0) or by putting
the following statement in your autoexec.bat file BEFORE mscdex (you
really don't need an mscdex at all in your autoexec.bat file, rem it
out and your cdrom will work as usual, and save you low ram)
Change the 'c' to whatever drive you put it on.
4) Boot 95, and go into my computer, click on the drive assigned by fakecd
(in my case it was e:). Find the sonic dude, and start it up. You'll
hear a cheezy "Sega..." song, with the options setup and exit.
5) Click on setup, choose c:\sonic (or whatever drive you put it on) as the
destination path, and choose minimum install.
6) If you have a joystick, you will be prompted to calibrate your joystick,
and then the "Sega..." song will play again. This time click on Play.
7) You will get a MMSYSTEM error (cause the audio tracks are missing). Just
click on Ok.
Then start playing! (use f4 to go full screen)