It works perfectly fine for me. I just run the Magic.exe and it starts up perfectly. The version I have is 1.1, and it is a copy of a previous install from floppies. Can't remember how or with what dos emulator I installed it.

Are you using a cd-version of the game?
Are you having problems running it or installing it? (sorry for asking but I wasn't quite sure)
If you have a cd and are having difficulties installing, you might want to check the readme for about using '-t cdrom' as an option when mounting the cd.

Perhaps try using different sound card settings in the configurations?

MOM version 1.3.1 (the latest) works fine on DosBox 0.65. Are you using a version of D-Fend intended for an older version of DosBox?

Setup I use for MOM (Port/IRQ/DRQ(DMA) to match default dosbox settings):
SB Pro later/Port 220 for music
SB Pro later/Port 220/IRQ 7/DRQ 1 for sfx

Dynamic core works fine.

It's also possible to get MOM working with VDMSound, which runs faster than dosbox:
See Master of Magic - Part 2

I guess I must be doing something wrong, then. I have the version of MoM that doesn't require a CD, that much I know because I've run it before, on 98, and I've got the 0.65 version of DOSBOX too now and the last of D-Fend's. Anyhow, here is what I did in D-Fend:

The profile has E:\Ported\MS-DOS\MAGIC\MAGIC.EXE written in the GAME EXE line, "E:\Ported\MS-DOS\MAGIC" being the directory with the game files.

And for SETUP EXE I put, of course, E:\Ported\MS-DOS\MAGIC\INSTALL.EXE.

What else? Gave it a lot of memory under "Environment" and under "Mounting" wrote "E:\Ported\MS-DOS" - the folder that contains the MAGIC folder. I also tried putting in the MAGIC folder itself, no use.

Drive label - E

Mounted drive letter - E

(The E: drive is, obviously, where the folders actually are, so I decided not to muck about).

When I try to run this profile, I get the message:

Current mounted drives are:
Drive E is mounted as local directory E:\Ported\MS-DOS-MAGIC\
Drive Z is mounted as Internal Virtual Drive

I don't know about the Z business, but the point is, when I try to run MAGIC.EXE or WIZARDS.EXE or ITEMMAKE.EXE, I just get these messages. And when I run INSTALL.EXE, I get nothing at all - DOS BOX crashes.

So there's that. I'm fairly certain nothing has happened to the files that could have damaged INSTALL.EXE, so I have no clue why it behaves that way. Or did I misconfigure the whole thing?

Tried this guide?: 60 seconds guide to getting your game to run in DOSBox

The only thing I can notice is-
-Drive E is mounted as local directory E:\Ported\MS-DOS-MAGIC\
Which I presume is only a typo for
-Drive E is mounted as local directory E:\Ported\MS-DOS\MAGIC\
About D-Fend, I can't help since I've never used it.

If you've kept the game in an archive, is it possible it's gotten corrupted?
Because my install is about 25 Megs and the game came on 7-1.4M
floppies. Which makes a compression to 500 kb seem a bit small.
The file sizes for the EXES for version 1.1 (for me) are
51072 Aug 1 23:49 dos/magic/install.exe
169992 Aug 1 23:49 dos/magic/itemmake.exe
295248 Aug 1 23:49 dos/magic/magic.exe
38620 Aug 1 23:49 dos/magic/mpscopy.exe
949552 Aug 1 23:49 dos/magic/wizards.exe

For the error messages it might help to provide them or at least a little
detail of what type of messages they are.

I'm afraid I can offer only my guesses as to possiblities or things to try-
Is the directory read-only?
Did you want to try setting the core to normal if it's been set at dynamic?
Did you want to try running dosbox by itself and the following commands
mount e E:\Ported\MS-DOS\MAGIC
e:
and then try running install?

MOM is roughly 8 megs compressed. That does sound like the problem.