Yes, sounds strange that you are mounting the C:\ directly as the SC2000 directory but if you can access sc2k.exe from there, then it should work.
From my personal experience with both 0.60 and the CVS's, you will not be able to adequately run SC2000 under dosbox at this time with a computer of your speed. I have a 2000+ XP and 512MB of ram and even when maxed out on my CPU cycles and framerate skipping, the game runs very slow and the music is even more annoying because it's extremely slow and delayed.
For myself, I installed my SC2000 off the floppy disk version that I own and had no probles. The game is directly installed onto the harddrive. What error do you get when you reach the neccessary file on the CD-ROM? If it is an old disc, it may be damaged.
Try copying the contents of the CD to another directory and mounting that as a separate drive. Otherwise, use a program to run a virtual image of the disc. My version is signifigantly older than yours so my readme probably can't help you but here it is anyway:
SIMCITY 2000 (TM)
Last Minute Info
12/27/93
-----------------
Please read _ALL_ of this document! This stuff is important!
It covers a lot about memory, installation, various graphics cards and
sound cards, gameplay issues, importing cities from other versions of
SimCity 2000 and hot keys.
** MOST IMPORTANT STUFF--ABOUT MEMORY
SimCity 2000 requires a lot of memory to run--4 MB total, but also a lot
of free memory in the conventional 640K range. On some machines, even if
you have the required 4 MB, SimCity 2000 may report that you do not have
enough free extended or conventional memory. If this is the case, your
best alternative is to create a boot disk as outlined on page 6 of the
SimCity 2000 DOS Addendum/Quick Start Guide. Another solution that may
help is to install SimCity 2000 with No Sound and No Music selected. If
you have already installed SimCity 2000, you can change your current
sound, music, and video settings by running the INSTALL.EXE program in
the SimCity 2000 directory.
We recommend that you not load any memory managers or disk cache
utilities while running SimCity 2000. Especially if you are using
DOS 6 on a machine with only 4 MB RAM.
If you are using a memory manager, you MUST NOT have it set in auto
mode--this will cause a conflict with SimCity 2000.
If you are using MS-DOS 6 and absolutely must load EMM386.EXE,
you will need to either have the EMS size set to 'noems' or larger
than 4096. See your DOS manual for information on how to do this.
** INSTALLING STUFF
Video Selection
---------------
The SimCity 2000 installer will attempt to figure out what kind of
video card you have in your machine. If it can, it will list that card
in the video selection window. If it is not sure what kind of video
card you have, or the installer detects a VESA driver in memory (or
in BIOS), it will default to the VESA VIDEO DRIVER. You can click on
the arrow to the right of the VESA VIDEO DRIVER entry for a list of
other cards that the installer thinks you might have. If your card is
on this list, you can select it instead of the defaulted VESA driver.
Sound Selection
---------------
SimCity 2000 cannot automatically detect what kind of sound card you
have in your machine. You will need to pick your sound card(s)
out of the lists provided. The installer will then try to verify the
presence of that sound card in your machine. If the installer is
unable to detect the sound card you have specified, certain hardware
settings on your card may be different than what SimCity 2000 is
expecting. To change these settings, select the Change Settings
option from the sound card verification window (Where it says "OK"
or "Failed!"). For more information on these hardware settings, see
the manual that came with your sound card.
** VIDEO CARD SUPPORT
VESA Drivers
------------
SimCity 2000 supports a variety of different video cards and VESA mode
101 (640x480x256 colors). VESA stands for Video Electronics Standards
Association. If you do not find your video card listed by name in the
installer, we recommend that you pick VESA VIDEO DRIVER and run a
VESA driver supported by your video card before booting SimCity 2000.
Some video cards have built-in VESA drivers so you won't need to
manually load a driver. Other video cards have an external file that
needs to be run from the DOS command line before running SimCity 2000.
Others, like the Diamond Viper VLB, have the VESA driver built into
the video card BIOS, but you still need to tell the card to load the
driver before running SimCity 2000. In the case of the Diamond Viper
VLB, you would need to type 'VPRMODE VESA' [Enter} at the command line
to load the driver.
If the VESA driver is an external program, it would probably be found
on the disks that came with your video card. If you don't have a VESA
driver you should contact your video card manufacturer. We have
included VESA drivers for most popular cards on your SimCity 2000
disk 1.
ATI Ultra Pro or Mach 32 Video Cards
------------------------------------
If you have an ATI Ultra Pro or other card based on the Mach 32 chip,
you must run the included utility MW_ATIUP.EXE before playing
SimCity, for complete compatibility.
Simply type: MW_ATIUP [Enter]
then type: SC2000 [Enter]
to use your ATI card with SimCity 2000.
Trident Video Cards
-------------------
Some older Trident video cards may not be compatible with the Trident
driver installed by SimCity 2000. If you installed a Trident video
card and are experiencing video problems, try running the INSTALL.EXE
program in the SimCity 2000 directory and selecting the VESA video
driver.
Activating bistromatic drive!
