A common problem with DOSBox seems to be that the location of the MSDOS mouse pointer does not correspond to the place where you tap on the screen. I think that I found the solution on my Nokia N800. Edit the dosbox.conf file so that autolock=false:

/usr/share/dosbox/dosbox.conf

autolock=false
priority=highest,normal
frameskip=0

The priority and frameskip options are further down in the dosbox.conf file. Setting frameskip makes the video updates less choppy. I am not sure if changing the priority has made any difference.

I am able to play Master of Orion v1.3 with music and sound, although music and sound is not necessary for this game. A keyboard is not really necessary for this game, either, so I modified the [autoexec] section in the dosbox.conf file to mount my dos directory from my internal SD card and run orion.exe:

[autoexec]
#Lines in this section will be run at startup.
mount D: /media/mmc2/dos
D:
orion