I managed to get Daggerfall running under DosBox 6.1.
--note---
I have not played it much, so I don't know if the common bugs are there, but I got it running smooth.
--end note--

I ran the setup and it detected the Gravis card...I changed it to SB Pro, but I don't think it matters. I am running the no-cd patched version.

PC:
AMD 2100+ XP
Gigabyte 5950U Geforce4
1024MB RAM

DOSBox Conf:
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[sdl]
fullscreen=true
fulldouble=false
fullfixed=true
fullwidth=800
fullheight=600
output=surface
[dosbox]
machine=auto
memsize=64
[cpu]
core=normal
cycles=16000

[autoexec]
mount g G:\
g:
cd dagger
mouse
fall z.cfg
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I'm running it off a FAT32 Partition G:
I originally had issues with the mouse moving in game. I downloaded a generic DOS mouse driver, which gives me an error stating the mouse driver is already loaded, but without it, I can't move the mouse.

It runs in window mode as well. This may be a limitation of DOSBox, but I couldn't get it to run OpenGL in fullscreen. Also, I run it in 800x600 cause Daggerfall looks real old on a 21" monitor 😜

edit: Changed Cycles/double buffering