How do I transfer files from Win95 to Vista using a Linux Live CD?

What I’m trying to do is transfer files from my old PC to my new one. My old computer is a HP desktop. It doesn’t have a CD-Writer and I can’t remove the hard drive. It does however have a USB port but since my Win95 does not have USB support I looked for alternatives. I found an interesting blog that proposed using a Linux live CD, booting from it, and then copying the files to a USB Key. Problem with this is that I am not interested in paying or ordering the CD since my new computer can write CD’s so all I have to do is download it and burn it.
Here is the problem. I am on Dial-up and have a limited amount of hours per week. I have no clue how ISO files work nor how I can burn them to a disk. I use CyberLink DVD suit to write CDs.
Can any one recommend a small Linux OS that has USB support and can run as a Live CD on a Pentium II 400MHz, 128 Mb Ram, 6.4 Gb total memory split in 2.1Gb partitions? Also how do I create the Live CD? (new system runs on Vista)

Thank you in advance.

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