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Originally Posted by Scatty

This is a known issue with Stonekeep, caused by the game not recognizing some exotic mouse drivers (which DosBox is). Was the same problem with my German version of StoneKeep, luckily I got the game CD from some magazine which included a Microsoft mouse driver on it as a predictable fix.
Download this driver here and load it in DosBox (just add the EXE to the [autoexec] part of dosbox.conf.) before playing the game, this should fix the issue.

interresting find Scatty!