Comment 6 for bug 52857

Tried later version of freedos package as suggested above by Mantas Kriaučiūnas.

Downloaded and installed package dosemu-freedos_0.0.b9r5a-3_i386.deb (from Debian unstable or testing).

More detailed instructions if anyone needs them:-
Browse to Debian mirror list for package http://packages.debian.org/cgi-bin/download.pl?arch=i386&file=pool%2Fcontrib%2Fd%2Fdosemu-freedos%2Fdosemu-freedos_0.0.b9r5a-3_i386.deb&md5sum=dbdb9b3d6d70d2713611969eb50a3f9c&arch=i386&type=main
Download package from one of the mirrors.
Uninstall dosemu-freedos version b8p-4, eg. using Synaptic Package Manager.
Install downloaded package, eg. right-click file and select 'Open with "GDebi Package Installer"'.
Remember to uninstall the Debian package when official Ubuntu version available.

Afterwards dosemu seems to work properly both in terminal window and after text mode login.

This seems to cure both this Bug #52857 and also Bug #53384

Suggestion to maintainer: please change Dapper to use the above version, there does not seem to be much reason to keep the current unusable version.