I LOVE DOSBox!!! I actually mounted just my E:\ drive, which is my games drive, and decided to stay away from mounting the C:\ drive.
I somehow still have all 6 of my original 3 1/4" floppy disks of Windows 3.1. So one day I decided to install it through DOSBox using this 3 1/4" USB floppy drive that I got off a guy I used to work with. The funny thing about the whole ordeal, was that I was on with a friend on Skype, and no sooner that I install it, he says, I hope you didn't put that on your C:\ drive, because you are screwed. Well, luckily for me, I still only had the E:\ drive mounted, and I said to him, yea thanks for the reminder

So I got off lucky. Who knows what would have happened if in DOSBox I installed Windows 3.1, because that does install to C:\Windows, if it's on the C:\ drive
And those shortnames for the folders thing, there's only so many characters you get to work with, for filenames and for folder names in DOS. Like if I want to get to my Dosgames folder, I have to do this:
E:\ (enter)
cd dosgam~1 (enter
So that now I am at, E:\Dosgam~1\>
It's just a limitation with DOS. On a Windows XP OS and above, where you only get a command prompt, you are able to use the entire folder name.