???
I haven't used the latest version of DOSbox yet, but are you unpacking DaggerFall in a directory with spaces in its name? Remember DOSbox is a DOS emulator and works just like a DOS environment, and IIRC, DOS doesn't like spaces in directory names. Don't install/unpack DOSbox into the default Program Files or "User" folders. These directories have spaces in them. All games I load with the Box I put in a folder called "games" right smack in the middle of my C drive. That way there's no confusion or resistance. Then inside that folder, each game gets its own folder with a name no longer than 8 characters. Try that if you haven't already.
That may have been my problem, I did put the spaces in! Thanks so much, I'll try what you said!
Ok, that didn't work, it says no such directory. Do I have to create a directory to put it in, and if so, how ??