User profile folder
The user profile folder or Home Folder is a place where DOSBox will look for the Dosbox.conf file for the user that executes dosbox.exe. The location of this folder varies depending on the host Operating System.
Windows 7 Home Premium
In Windows 7 Home Premium the config file is located at C:\Users\Fred\AppData\Local\VirtualStore\Program Files (x86)\dosbox.conf
where Fred is your username
It appears that Start > All Programs > DOSBox > Configuration > Edit Configuration points to a config file installed at c:\Users\Fred\AppData\Local\DOSBox\dosbox-073.conf. This file is not read when DOSBox starts.
(On Windows 7 Professional I edited the above file's autoexec section and immediately upon saving and restarting DOSBox, the commands were performed, indicating it must have been read.) - PhyloGenesis