OK, what we're going to try now is going to be a notch drastic, but seems like it's the only thing we can do without getting things mixed up worse than they were before.
Start by deleting the game from your HDD (the copy installed in C:\Games\).
Now, create a "DOSGames" directory on your C drive (directly in the root of the drive).
Open up your Dosbox.conf and go to the end (after where it says
[autoexec] - the entire procedure is a variation on
this).
Add the following three lines at the end:
mount C C:\dosgames -freesize 700
imgmount d d:\KOM_THIDNEY.iso -t -iso
C:
Save the modified config, start DOSBox, go to
D: and install the game from there.
See if that will work.