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[dosraider]

[UPDATE]
Found my ol'C2 CD, the Win95 updated version.
The CDrom version of CaesarII works fine in dosbox.
It has the Win version but also the Dos version on it.

Mount a virtual C,
Mount your CD as D and run INSTALL , not setup, that's the win applic, won't work in dosbox.

Accept C:\Caesar2 as install dir, after the files are copied you get sound setup,
I choosed (on a default dosbox config):
Midi: SB16, auto config
Digi: SB16, autoconfig.
'Done'
Input C2 in your C:\caesar2 dir to run the game, works flawless.