[The Fifth Horseman]

This basically commences the game, but I was wondering if this is the wrong way to start up Wolf?

Altough it is technically supported by DOSBox, I do not recommend using it.
It might be the cause of the freeze problem you described.

Start the emulator and mount the C drive using proper commands.

Note that the game may need to be under a specific path in DOSBox to run properly - eg C:\WOLF - in which case mounting its directory as the C drive is counter-productive.