The dos game on CD;
Dosbox0.72 seems indeed to have some kind of a problem with it. Gonna try later with an older version of dosbox.
However runs fine in VPC_Dos6.22:
Runs even better if you replace dos4gw.exe by dos32a.exe.
The windows game:
Runs perfect in VPC_W98SE.
No reg tweaks needed.
Let DirectX upgrade if needed, done.
Disable pointer (mouse) integration.
Haven't tried in Xp, no need to as it runs flawless in VPC.
One advantage of VPC is that you can mount the ISO with one click, as you don't want to install deamon.
My 2 cents.
*Edit
This is the dos4gw.exe you need for VPC_dos6.22:
dos4gw.exe - 0.03MB
It's dos32a.exe renamed to dos4gw.exe.
You'll need WinISO or powerISO or similar, open the ISO, delete dos4gw.exe in it, paste the one I linked in it and save the ISO.
You can't do this with WinRAR, even if it can open ISOs, it won't work.