I have just downloaded DOSBox 0.63 for the same reason!
(i saw the dd cd sitting there in the rack crying "y dont u play me anymore?!")

However, i didnt have enough "memory" under XP to install it (complained during installation),
and as i have other dos games, i decided to try DOSBox...

anyway, to cut a long story short,
i also get hung up at the CD check (during installation)...
The setup program runs fine, checking memory and some other stuff, and then
stops, complaining:

"You require an mscdex driver installed to run this game"

However, MSCDEX is installed and running?!
(as stated after running the mount comands... i have used all cd mounting options)
Could this because the installer is looking for a specific version, or doesnt
recognise the one DOSBox uses?! If so, is it possible to provide a workaround, for
example finding another mscdex style driver? (is that the correct term? as im not even
sure what it does!)

The destruction derby installer i have is Psygnosis v1.6 (copyright 1995)...
im not sure of the game version as i havent installed it yet! (and the manual is
wafty... it was in one of the silver packs or something... you know those ones... dd2 is now released
so we will flog you this game for half price and call it a classic - actually, in this case, dd is a classic!)

Anyway, any help or insight would be very much appreciated!

mount with "-t cdrom" emulates MSCDEX and the program should work appropriately. If not, it must be doing some strange checking or version checking.

To actually get Destruction Derby to install in Windows do the following.

1. Copy contents of CD to a folder on your hard drive.
2. Create folders to store the unzipped contents (e.g. below)
c:\games\derby (this will hold the contents of dd.zip and dd.*)
c:\games\derby\intro (contents of intro.zip)
c:\games\derby\level001 (contents of l1.zip)
...
c:\games\derby\level010 (contents of l10.zip)
c:\games\derby\replay (contents of replay.zip)
c:\games\derby\samples (contents of samples.zip)
3. Open a command prompt and do the following for all zip's in the folder you copied them to. do one at a time so as to avoid confusion of which files go where
psyunzip intro.zip
4. Copy contents to their proper directories.
5. Setup dosbox like normal (you still need to mount the cdrom for the disc)

I did all the psyunzip stuff in Windows XP 32-bit, but it runs fine with Dosbox in Windows XP x64. I'm assuming you should be able to do everything in x64, but didn't try it out. Dosbox itself could be a possibility.

Abit KV8Pro mobo
AMD Ahtlon 64 3400+
1GB DDR400
ATI AIW X800XT 256MB
Realtek ALC650 AC97 compatible
Windows XP x86 and x64
Dosbox 0.63

I used SB16 audio and software rendering for video.