Ok, a couple of pointers:
-Why mount the virtual harddisk as F and not C?
-Is there any particular reason to load Gateway from such a long path that, besides being redundant, contains spaces? DOS likes 8.3 filenames...loves them so much actually that it won't work with anything else, that's why your Windows is probably wasting a couple of cycles every time you create a filename: it also includes an 8.3 filename (i.e my_big_ass_long_filename -> mybi~001).
-Dosshell is most likely NOT mounting the whole directory as a harddrive (example: c:\dos as c: ) and instead is mounting say...this: "c:\dos\treasure -> f:\" if you look at treasure.cfg with your favourite text editor, you'll probably find this:

1[...]
2C:\TREASURE\SAVE\
3C:\GATEWAY\SAVE\
4[...]

Or something similar, so, that's what Treasures is expecting and, most likely, not getting. You need to tell Dosshell to mount all of the dos folder as c: (or f: 😖), then you'd run into the 8.3 problem I explain above.
So this is what I'd do:
-Move the gate installation folder from that long, convoluted and, probably, useless path into c:\dos ending up with just c:\dos\gate.
-Check treasure.cfg with a text editor and see what it's expecting.
-Make my mounts conform to that, making sure the paths can be obtained.
-If I were so hellbent on using F instead of C (for whatever perverse reason), I'd also edit treasure.cfg to point to f instead of c (i.e F:\TREASURE\SAVE) and, if I can't be arsed to do all the stuff I mentioned above, maybe change that line to F:\SAVE...but all that would imply typing.
-Make the gateway save folder in treasure.cfg also comply: F:\GATEWAY\SAVE but...typing again.
Well, that's what I'd do.
Oh and I wouldn't double post 😀

Thanks for the reply. Sorry about double post, my internet connection is crappy, I probally clicked a few times too many.

Took a peek into Treasure CFG file and it said

C:\TEST\TREASA~1\TREA\SAVE\
C:\GATEWAY\SAVE\

I will try Changing this to F:\TREA\SAVE
F:\GATEWAY\SAVE

F is the default hard drive for DOSSHELL, I keep it that way so I dont need to reconfigure all my other DOS games.

Now for a stoopid question :Do i need to add in the \dos since I have the GATEWAY/TREA files in my dos folder? I appreciate your help & patience

I couldn't quite understand the question, but if you're changing everything to f, then treasure.cfg should end up:
f:\trea\save
f:\gate\save
(according to your first post for the gateway folder) and c:\dos should be mounted as f:

I edited my cfg file for treasure to show
f:\trea\save
f:\gate\save

but treasures still is not detecting its own save directory. Not sure what I am doing wrong.

The folder inside c:\dos for Treasures MUST match what you edited in treasure.cfg, so the folder for Treasures must now end up being c:\dos\trea instead of c:\dos\treasure, don't move any files, just rename the folder...

If that fails...DossHell isn't mounting what I told you: c:\dos as f: so...
Let's try this...edit a .conf file and in the autoexec section (the last one) add these lines:

1mount f c:\dos
2f:
3cd trea
4start.bat

save the file, run Dosbox using that .conf file and tell me how it goes. That *should* fix it

Don't want to? Try D-Fend reloaded, I know for a fact that one will let you specify the mount I'm telling you about.

*Important* make sure of these two things:
-start.bat lives in c:\dos\trea
-there's a folder called save in that directory, otherwise, we're just wasting time here. If start.bat is there but save isn't, create a folder called SAVE inside c:\dos\trea

Well, I got it working...kinda weird what I had to do.

On my C drive is a folder "dos" that contains TREA and GATE

the cfg file in GATE is as I mentioned in above post. For some reason that wasnt working. So..... Just for S&G I copied the entire TREA and GATE folder and put them INSIDE the original TREA folder......guess what? Works like a charm.

Im pretty sure I had a path screwed up somewhere that I inadvertantly fixed by my not so random file shuffeling

Anyway, thanks for your help and patience!!

It works because, as I said, c:\dos\trea is getting mounted as f: instead of c:\dos, as it should have been, glad you sorted it out...but it's not quite the most optimal solution.