This is how I got DOSBOX to work with my installation of Ubuntu, and it runs perfectly with no glitches.

What is DOSBOX?
DOSBox emulates an Intel x86 PC, complete with sound, graphics, mouse, modem, etc., necessary for running many old DOS games that simply cannot be run on modern PCs and operating systems, such as Microsoft Windows 2000, Windows XP, Linux and FreeBSD. However, it is not restricted to running only games. In theory, any DOS application should run in DOSBox, but the emphasis has been on getting DOS games to run smoothly, which means that communication, networking and printer support are still in early developement.

DOSBox also comes with its own DOS-like command prompt. It is still quite rudimentary and lacks many of the features found in MS-DOS, but it is sufficient for installing and running most DOS games.

Now on to the fun

1) Downloading DOSBOX.
You can download DOSBOX from their official site.

2) Installing DOSBOX
In terminal, type in the following commands:
cd ~
tar xvf dosbox-0.70.tar.gz
cd dosbox-0.70
This will install dosbox, and might take a while depending on your machine!