Didn't work either, now I have CRS, haha.
http://www.gamesas.com/index.php?app=forums&module=forums§ion=findpost&pid=694769
Usually the only option in cases like this is to disable stuff until it starts working again.
I would start by disabling sound and music from install.exe
which you apparently have already done.
than I would move onto commenting out autoexec.bat and removing references to the sound and music by prepending 'REM' to the lines.
if that doesn't work I would remove the mousectl command.
Now assuming all this results in the same mess I would than go and check back on the instructions provided to ensure that compatibility is set to win95 and memory is set to auto.
than I would double check again that the correct autoexec.bat and config.sys is being pointed to.
Since I am assuming you have done the above paragraph the next thing to do would be to provide us with your computer details.
or perhaps to try run the game with VDMsound but without Dosbox.
other than that I'm getting pretty stumped right here...