Do you run djgpp in DPMI mode, like under Windows or in OS/2 DOS box? The emulator currently doesn't work under DPMI. If you can put the nodpmi parameter into your GO32 environment variable and still run djgpp, that's what you should do; if not, you will have to wait until v2.0 of djgpp is available, or try running djgpp with the RSX extender instead of go32.

RSX is available by anonymous ftp from ftp.uni-bielefeld.de in the directory /pub/systems/msdos/misc. The RSX extender includes its own FP emulator and can run DJGPP programs in DPMI mode.