I wonder if muddy isn't trying to write a script or batch file to invoke the game program? The short cut to do that inside a batch file is simply 'CD\' (without the quotes). That takes you immediately back to the drive prompt, ie, C:\
You can test that in a command window, 'Start' - 'Run' - type 'CMD'.
Configuration inside the cmd window doesn't allow path selection tho. However, you can configure the 'look' of the window by clicking on the small icon, C:\, in the upper left and choosing 'Properties'.
The other shortcut to do it is to type 'CD..' which takes you back one directory at a time.
: "DOSBox is emulator software that emulates an IBM PC compatible computer running MS-DOS. It is intended especially for use with old PC games. DOSBox is free software.
DOSBox can be used to run old MS-DOS software, especially games, that would otherwise not work on modern computers."
So, yes, DosBox should work fine.
XP does have a 'Compatibility' mode, but DOS is not available. Only goes back to Win95.