Got the game working.
used the following mount:

mount c c:\Dosbox -freesize 1000

mount e c:\dosbox\dfcd -t cdrom -label Daggerfall

Then installing the game from de E: to the C:\ partition.
In the Bethesda download file is a PDF included with more information.

I can install just fine, using the -freesize paramater. When I try to play, i get the message "unable to locate daggerfall CD".

Also, the link to the .PDF on the Bethesda site isnt working.

Use the same mount commands when installing and when playing.

The "-label Daggerfall" part is case sensitive. When you mount the CD, don't write daggerfall or dAGGERFALL or anything else.

Also, make sure you use the latest DOSBox. 0.72 or older won't work.

as xanthial seems to have a problem with his capslock key 😀

I'm not 100% sure, but it seems to me that the DOSShell frontend does not have any options to configure multiple DOSBox mounts (which are necessary in this case).

You don't need a CD drive at all.

This topic has been covered a few times already. Read, for example, my post in the topic "TES 2: Daggerfall" (or simply use the search function for "Daggerfall").

Good luck!

I took the easy way out, and downloded the daggerfall setup package that does all the work for you.

Game works great now

Thanks for the help though !