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I'm unclear about Sanitarium being a dos game or not. I know it had a re-release in 2002 but I'm not sure if it was just because it was a DOS game to start out with. Both Wikipedia and Mobygames are not clear on this either.

I noticed it was on sell and wanted to pick it up if it was a DOS game as (hopefully) soon I'll get my Pandora and wanted to play this through DOSbox if it was a dos game.
No, Sanitarium is a native Windows 95/98 game. As far as I know they released a patch to make it run properly on Windows XP with the re-release. I assume GOG did some additional tweaks to make it work on Vista (and possibly 7, I haven't tried it yet).
Ah, this sucks, I hoped I could play it on my Pandora through DOSbox. I'll still get it to play it through though as it is on sale right now.
I am successfully running the playable demo under dosbox through win95. My current issue is resizing the win95 img to install the full game.