Sorry for the delay. I tested the Second Reality demo in dosbox-x (actually a dosbox-x build with the vanilla dosbox s3 video) by booting a windows 95 image inside dosbox-x, exiting to DOS 7.0, and ran the demo from there. The demo worked in this setting while sound was off! I didn't test further, but I definitely passed the "Mini Vector Balls" scene. In fact, it ran very fluidly and my impression is that it ran better than in dosbox-x without a boot image (the part that previously worked anyways).
I could guess that there is missing emulation from vanilla dosbox(-x) which caused the previous crash. Also, this would prove that real DOS should run the demo without problem. Another guess is that this is related to the path problem in dosbox (the wikipedia author must have only tested inside dosbox); and that the 95 boot image is able to properly handle the directory paths. In any case, this means that dosbox-x has no bug related to the demo, but instead it's a case of incomplete emulation that is made complete with a dos image, or a 95 image (almost the same thing!). 😀
An interesting side note is that I didn't load anything in autoexec.bat or config.sys. So, EMS must have been entirely disabled.
Edit: further information on demo is reported here: Future Crew's "Second Reality" Demo won't run properly under DOSBox 0.7x
The vectorball code appears to use an uninitialized variable on the stack. The stack also contains the full pathname to 2ndfix.exe so that changing the path the initial garbage value for the variable also changes. The code works if you're lucky. If I set the variable to 0 under dosbox debugger, the vectorball effect works regardless of the path.
-and-
DOS stack changes may be because of IRQs or routines that use more stack space than dosbox.
However, since a dos image in dosbox bypasses the problem, and assuming that it isn't an immediate timing issue, then booting from the dos image may provide larger stack space somewhere? Seems like the dosbox debugger could yield further insight.
And a post by ripsaw may have relevance: [DemoScene]Bugs with some demos.
Edit2: tested ripsaw's patch with dosbox but didn't use a boot image, only emulated dos. The patch has an effect. Now it doesn't crash in the same way, instead the demo video freezes and the last second of audio repeats. However, the patch yields direction, as the change is in dos_execute.cpp.
I also didn't yet run with default dosbox configuration settings, as the above post recommends. However, tried 1) core=normal, cycles=15000 and 2) no sound in demo, core=dynamic,cycles=max,ems=false with same result. This reduces the likelihood of EMS emulation or Audio having a role. I think the debugger and the "stack space" idea should provide a test, at least the debugger result could be reproduced as reported in the above referenced Vogons thread. This could be compared to a debugger result where a dos boot image is used (or better yet using dos on real hardware).
Edit3: reproduced issue with dosbox 0.65, but the only difference is the audio will still play. Regressed dos_execute.cpp (at least most of it) in current SVN without effect.