For those of you who prefer to run FreeDOS in a virtual machine, Bochs 2.6 is now available. Bochs is a free, open source PC emulator that lets you run FreeDOS (and other operating systems) from within Linux and Windows. Changes are mostly performance improvements and bug fixes (details at http://bochs.svn.sourceforge.net/viewvc/bochs/tags/REL_2_6_FINAL/bochs/CHANGES\). You can download Linux and Windows versions and sources from http://sourceforge.net/projects/bochs/files/bochs/2.6/
Things which are still buggy can be reported via their bug tracker at http://sourceforge.net/tracker/?group_id=12580&atid=112580
If you are new to Bochs, you may want to read Georg Potthast's quick-start guide: http://peter-bochs.googlecode.com/files/Bochs%20-%20a%20Guide%20and%20Tutorial%20for%20Windows%20II.pdf
Eric Auer adds:
I think this will be interesting for USB / UDMA / ... driver
users and developers as well :-) The new version improves the
compatibility and speed. New PC speaker support infrastructure
and faster CPU, debugger shows virtual device states, added a
virtual i82540EM Gigabit-LAN chip (port from Qemu) and so on.
VGA improved, for example blinking and retrace emulation, with
some ideas from DOSBox. "Improved PCI boot ROM support"...