DOSBox does not - and neveer did - automatically create directories for you to use as a default C mount.
Creating it is entirely up to you, as is naming it. I recall there were some issues with write permissions in Vista and Win7, so the directory should either be placed in your "My documents" directory or on a different partition.
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"God. Can't you people see I'm trying to commit a crime against science and nature here?"
-- Reed Richards
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