I'd like to know how various people run Arena in DOSBox, so we can perhaps come to an agreement on what's the most optimized method.

Me, dynamic core and ~15000 cycles. Mind I'm on a Pentium 4 2.40GHz (single core > all).

Auto core, 25000 cycles, 63mb RAM, Output=Overlay. The cycle is actually auto as well, but I have to set it to 25000 for Arena. I use Dosbox for several games, and for all of my purposes it works great. I only have to reduce or increase the cycle percentage/CPU percent for certain games.
I also have -freesize 1000 in the autoexec if that matters.

I actually just finished getting it to run two days ago and I haven't really found out what settings it runs best on my PC yet.

I've always used the dynamic core, as for in Daggerfall 100% works great. Though in Arena it's a bit too fast maybe, but with auto, Arena uses a numerical value (compared to Daggerfall's %). This is fine except it's tedious to up the cycles and perfect it...