I'm following the "setting up DOSBox" guide, but when I get to the "select DOSBox.conf from the start up menu" I get the message "The system cannot find the path specified" can anyone please help me with this. I'm running windows xp.

I was also wandering if there is any way to a save game, when I get it going ?

Well, if the entry in the start menu doesn't find the path, DOSBox probably isn't installed right. However, the file should be in the same folder you installed DOSBox to, in case of the guide it should be "C:\DOS\DOSBox-0.63" or something similar.

Oh and you save normally through the game, like you would do in real DOS. Could be that some incompatible games won't save properly, but I didn't encounter this, yet.

Yup. DosBox doesn't have the memory snapshot function of console emulators, and that's because it just has too many varied options that can be altered.

You either save the way your game allows or not at all (since some games don't have a save option).

O.K. thanks, I reinstalled dosbox and it seems to work fine.
But now I have another problem, I've downloaded flashback and extracted it to the CDrive folder, but when I try to move to that folder in DOSBox I get the message "unable to change to flash"

you have to mount the directory as c:

ex
mount c c:\your_game_folder_path

I think the directory is mounted as c i'm not sure, In the DOSBox.conf I followed the set-up and wrote mount c:c\, so when I open DOSBox it looks like this
C:\>

The Flashback files are extracted to the cdrive sub-folder I created under the DOSBox folder I created in C drive.

In DOSBox I follow the set-up instructions so it looks like this
C:\>dir (then press enter)
Then,
C:\>cd flash (then press enter)
Then I get the message
"unable to change to: flash" :help:

When you open DOSBox it should say Z:\>
It's at that stage that you type:
mount c c:\game_path
then type
c:

Or maybe I don't understand what's going on here

If you follow the DOSBox set-up on this site, it explains how you can make changes to autoexec.bat so you dont have to mount CDrive everytime you open DOSBox. When you open DOSBox it automatically comes up as C:\>
Is this wrong ? I was just following the instructions on how to install DOSBox and get a game up and running, which is on this website.

The actual problem is rather simple:
You try to change into the folder "flash", which simply just isn't there.
The command "dir" lists all folders and files in the folder you're currently in (in this case the C-Drive). "cd <foldername>" gets you into that folder, where you then can start the corresponding *.exe or *.bat file.

Yes, to avoid to type mount commands every time you open DOSBox, you should just use DOSBox.config file.

As Don Andy mentioned, it might be that name of flash folder is wrong. Check what's in C directory by typing dir, and then cd to the name as it appears in listing.