Hopefully this will help someone to run the game in dosbox. Okay now this is how I got it working for myself

Edit: Please note that I'm not installing through dosbox, sorry I forgot to mention that, but it does work, as long as its run in dosbox there are none of the xp bugs

1. Go here http://www.uesp.net/dagger/files/dagfiles.shtml and download "dag213.exe" which is under patches. While you are there also get "DFinstall" which is under misc. utilities. Put them in the same directory. (there is also other daggerfall stuff on the site which you may like to look at)

2. Put your Daggerfall cd in the drive

3. Double click DFinstall and click next

4. Tick all the boxes and click next

5. You will be asked to put in the path for you daggerfall cd, click browse and find it (will be something like D: or F: or some other letter). Leave the install path as C:\dagger

6. Click next twice and wait for daggerfall to install, it should install the patch, and eventually take you to the sound setup screen.

7. Select "select digital" and pick this configuration
sound blaster
port220
dma 1
irq (I say 5, it works for me, others say 7, it works for them, just pick and mix until you hear the guy talking)

Now select "Select midi" and pick this configuration
mpu 401
midi port 330

now test them both, and make sure to turn your volume up, the digital is quite quiet.

8. Go to your dagger folder and open "Z.cfg" with notepad, then remove everything and replace with

1type dfall_huge
2path c:\arena2\
3pathCD c:\arena2\
4fadecolor 0
5mapfile d
6rendergame 1
7user 1
8startMap 179
9region 17
10helmet 0
11maxSpeed 200
12controls betaplyr.dat
13maps mapsave.sav
14cheatmode 1

then save

9. Now go to your dosbox folder and copy and paste the dosbox.conf and rename it daggerfall.conf

10. open daggerfall.conf with notepad. Now find and make

Frameskip=1
core=dynamic
cycles=30000

then copy paste this to the very bottom

mount c c:\dagger
c:
fall.exe z.cfg

now save

11. create a shortcut to dosbox on your desktop, right click on properties and change the target to DriveLetter:\FoldersWhereDosboxIs\dosbox.exe -conf daggerfall.conf -noconsole

12. Now it should run fine, slow, but that is always fixed by increasing cycles.

Hopefully this was detailed, yet simple, enough to follow, and hopefully will help people to play daggerfall using dosbox[/code]