Well, I managed to get it all working from a fresh Diablo 2008 43-7 version.

Don't ask how I did it since it took way too long and I ran into a ton of hangups such as missing dependencies, incompatible application packages, wrong pill mode, apt-get errors, not being root, etc.

But hey, it finally works on my end with Ukki's latest version of Rubybox:
Rubybox 0.3.4

And yeah, like Pushwall said, the file to change the keyboard is actually located here:
/usr/bin/dosboxkbd (Sorry for posting the mistake earlier)

Anyone want to post a step by step along with all of the files and dependencies?

For some reason I don't care too much for the apt-get install thing. I prefer to just have folders on my memory card where you click on them in order without the need to be online.

I keep thinking someday all the repositories are going to die and I'll be left with nothing.

Does that make sense or am I being weird?