If you want to run SH without the CD inserted you must copy the /BUD directory with the file 10.smk (The rest are not needed) in it to your SH directory. Then edit your SHPATH.ini archive like this:
BUD =BUD\
DATA =DATA\
ART =ART\
SFX =SFX\
SPEECH =SPEECH\
CINES =CINES\
SCEN =SCEN\
SAVE =SAVE\
DOSBOX creates a virtual disk image with a single folder, and calls it C: for its purposes. Thus, to place the /BUD folder where the game can recognize it you must put it into what the game thinks is C: (Considering that by working through DOSBOX the game "believes" that it is installed in hard disk called C:, in no special folder). I tell dosbox to mount the image in my SH folder, ensure you do the same and it should do the job.
Works for me with DOSBOX
