I feel the need to point out that drive letters are relative to the OS. If you run a dual boot you will notice that the OS you run will almost always say it runs on C:\ when that is impossible for both. It's about perspective of the OS.
Are you sure you are making the drive active? When you install DOS, have you tried unplugging all the other hard drives to help ensure this drive will become that way?
Your method would appear correct, but there may be a problem with it. DOS cannot read ntfs partitions, and this includes the 16-bit installer used in this method. Thus all partitions need to be FAT32 if DOS and the installer is going to be able to read them and use them.
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