It seems to be a mouse driver problem, a DOS driver that needs to be loaded. You could try out
http://ykhwong.x-y.net/
Under "Data", page three you can find the '[Util] Device Loader'. This programbundel can load simple drivers / Sys-files. It doesn't allow all drivers to be loaded there the DOSBox doesn't allow everything DOS once did.
I would also suggest to use ykhwong's CVS build. This build has the ability to turn the mouse driver completely off and has some more features then some CVS builds around.
As for the "mouse language" you mentioned, this can't be the problem because DOSBox converts the old DOS functions to the new Windows functions and vise versa. You'll get the same problem even by popping in a USB mouse or an old serial mouse, as long as Windows itself can use it. DOSBox simulates an old mouse driver, that is best compatible with all games, and then translates it to your new mouse.
I'm out of idea's, as I'm not that well known with the old DOS experience. Maybe sombody else might popup with the sollution.
Erik.