Sounds like the joystick emulation is interfering. If you don't need a joystick, use joysticktype=none. If you do, try changing the value of timed (i.e. timed=true or timed=false).

I think it is already disabled, here's a copy of my config file. And BTW, I just installed F117 Stealth and the mouse works perfect, so it's just this one game.

# This DOSBox configuration file was automatically created by D-Fend Reloaded.
# Changes made to this file will NOT be transfered to D-Rend Reloaded profiles list.
# D-Fend Reloaded will delete this file from temp directory on program close.

# Config file for profile "DOSBox DOS"

[sdl]
fullscreen=false
fulldouble=false
fullresolution=original
windowresolution=original
output=surface
autolock=true
sensitivity=100
waitonerror=true
usecancodes=true
priority=higher,normal
mapperfile=C:\Users\Matt\D-Fend Reloaded\mapper.txt

[dosbox]
machine=vga
captures=C:\Users\Matt\D-Fend Reloaded\Capture\DOSBox DOS
memsize=16

[render]
frameskip=0
aspect=false
scaler=normal2x

[cpu]
core=auto
cycles=auto
cycleup=500
cycledown=20

[mixer]
nosound=false
rate=22050
blocksize=2048
prebuffer=10

[midi]
mpu401=intelligent
device=default
config=

[sblaster]
sbtype=sb16
sbbase=220
irq=7
dma=1
hdma=5
mixer=true
oplmode=auto
oplrate=22050

[gus]
gus=true
gusrate=22050
gusbase=240
irq1=5
irq2=5
dma1=1
dma2=1
ultradir=C:\ULTRASND

[speaker]
pcspeaker=true
pcrate=22050
tandy=auto
tandyrate=22050
disney=true

[dos]
xms=true
ems=true
umb=true
keyboardlayout=US

[joystick]
joysticktype=none
timed=true
autofire=false
swap34=false
buttonwrap=true

[serial]
serial1=dummy
serial2=dummy
serial3=disabled
serial4=disabled

[autoexec]
@echo off
SET PATH=Z:\
keyb US 437 > nul
mount C "C:\Users\Matt\D-FEND~1\VIRTUA~1\"
C:

If exist C:\FREEDOS\COMMAND.COM goto AddFreeDos
Goto Next1
:AddFreeDos
set path=%PATH%;C:\FREEDOS
:Next1

If exist C:\NC55\NC.EXE goto AddNC55
Goto Next2
:AddNC55
set path=%PATH%;C:\NC55
echo You can start Norton Commander (file manager) by typing "NC".
Goto Next3
:Next2

If exist C:\NC551\NC.EXE goto AddNC551
Goto Next3
:AddNC551
set path=%PATH%;C:\NC551
echo You can start Norton Commander (file manager) by typing "NC".
:Next3

If exist C:\NDN\NDN.COM goto AddNDN
Goto Next4
:AddNDN
set path=%PATH%;C:\NDN
echo You can start Necromancer's Dos Navigator (file manager) by typing "NDN".
:Next4

If exist C:\DOSZIP\DZ.EXE goto AddDZ
Goto Next5
:AddDZ
set path=%PATH%;C:\DOSZIP
echo You can start Doszip Commander (file manager) by typing "DZ".
:Next5

Thanks again------------------------------------------------------Matt

Does it work if you disable the joystick (joysticktype=none or unplugging the thing physically/rebooting) ?