This game was awesome. Very old school and they offer it for free on Bestheda’s webpage.

Download game
You will then need DosBox to run this old software.
http://www.dosbox.com/
Then run dosbox after installation. Make a folder on the c:\ named dagger
Then in the console type mount c c:\dagger -freesize 1000

I used the cd to install the game. But regardless the DFinstall.exe from the website should extract the CD files that you need. My folder with the contents was named dfcd

Basicly whatever CD drive you use on your computer E: or… lets say G: you want to mount the files there.

mount e c:\dagger\dfcd -t cdrom -label Daggerfall <—- I put the dfcd folder(cd contents)in the dagger folder

Once you do that go to E: (or whatever your cdrom is) and run the install.exe for daggerfall and install all the files in c:\dagger

After installation set up sound ( don't use midi) Soundblaster is good enough

Go to start / all programs / dosbox / configuration / edit configuration
on the bottom of the .conf file is an autoexec part were you can enter
mount c c:\dagger -freesize 1000
mount e c:\dagger\dfcd -t cdrom -label Daggerfall
C:
cd\dagger
dagger

This will automatically start daggerfall when you run dosbox which is nice.

Enjoy a really old game