If you create a DOS bootable drive and use a non-US keyboard, app will attempt to select a keyboard layout according to the locale of your system. In that case, FreeDOS, which is the default selection, is recommended over MS-DOS, as it supports more keyboard layouts.
Notes on ISO Support:
All versions of Rufus since v1.1.0 allow the creation of a bootable USB from an ISO image (.iso).
Creating an ISO image from a physical disc or from a set of files is very easy to do however, through the use of a CD burning application, such as the freely available InfraRecorder or CDBurnerXP.