I read a good article on Troubleshooting MS-DOS-Based Programs in Windows (Q314106) at Microsoft knowledgebase website. One of the first thing to test when you are having problems with MS-DOS-based programs is the Windows Virtual DOS Machine (NTVDM) subsystem. Open START-RUN and enter command.com or cmd.exe. If you don't see a MSDOS windows coming up you of course have a problem. Check the Config.nt and Autoexec.nt files in the SystemRoot%\\System32 folder for nonstandard settings. Use a REM statement to remark out all entries except the following default entries:

Config.nt

dos=high, umb

device=%SystemRoot%\\System32\\Himem.sys
files=20

Autoexec.nt

lh %SystemRoot%\\System32\\Mscdexnt.exe
lh %SystemRoot%\\System32\\Redir
lh %SystemRoot%\\System32\\Dosx

lh %SystemRoot%\\System32\\Nw16 (only if CSNW is installed)

lh %SystemRoot%\\System32\\Vwipxspx (only if CSNW is installed)

The registry entries that are associated with the NTVDM subsystem are:

HKEY_LOCAL_MACHINE\\System\\CurrentControlSet\\Control\\Session Manager\\Environment
This key stores the environment variables from the Config.sys and Autoexec.bat files for use in
Windows.

HKEY_LOCAL_MACHINE\\System\\CurrentControlSet\\Control\\ VirtualDeviceDrivers

This key stores the device drivers that are used in an NTVDM session. Windows Setup creates these entries when a device driver is installed.

Read the article at Troubleshooting MS-DOS-Based Programs in Windows (Q314106) for complete details as I am simply repeating what's already available in the article.