Also, you may need to use Windows to change the compatibity mode on the qemu.exe if needed.
How would you change the compatibility? I get a qemu error when trying to run embedded from any other place than my drive pen.Well I answered my own question again. I right clicked on qemu.exe and clicked properties and changed the compatibility to work with windows 98 (I use XP) and then tried again to run dsl from the embedded dsl batch file and it worked like a charm. Just posting this in case someone else runs into the same problem.