Please update the CRYNWR.BAT file
This is a follow-up to bug #347 on SourceForge. It looks like in FreeDOS 1.3-RC5 the install path in CRYNWR.BAT has been fixed, but only the first part of the patch has been applied. Running that batch file installs a proper packet driver in fdauto.bat and the connection works (in VirtualBox, after disabling the default connection).
But when one launches fdauto.bat, the following error message is displayed:
Bad command or filename - "C:\FreeDOS\drivers\net\crynwr\pcntpk"
The %dosdir%\drivers\net\crynwr\ string can also be found at lines 442 and 570, removing \net should do the trick.
Also, would it be possible to add LSPPP.EXE and maybe its README.TXT (maybe as LSPPP.DOC) to the directory, so that dial-up modems are also supported? Version 0.9 is on https://www.ibiblio.org/pub/micro/pc-stuff/freedos/files/net/lsppp/ and more recent 1.0 on http://macall.net/ladsoft/index.htm along with GPL'ed source :)