DOSbox 0.63 will work (although I only tried it on Win XP Home SP2). You'll have to use
FASM.COM (from older version
1.45).
However, FASM 1.50 (now in .EXE format) actually causes DOSbox to quietly exit. FASM 1.64's .EXE won't work either and will report the error you mentioned above (without exiting).
Ask Privalov if you really want to know why newer versions won't work (unreal mode vs. flat real ???).
P.S. You may enjoy booting
FreeDOS Odin 0.72 instead ("
One
Disk
INstaller," 1.44 floppy image).