Seems to be pretty gamebreaking; when I go to get the reward within my inventory from a certain questgiver, the game freezes upon pressing 'exit'. I don't know how it started, and I know this game is absolutley horrifying when it comes to glitches and crashes and nightmarish bugs... I just don't want to start over. Do I have to dig through the directory and delete a copied file or something to that effect? I like the game so far, and would like to complete it without these insane obstacles in the way.

1. Backup your save file, and then reinstall the game.
If that doesn't fix the problem, then:
2a. If it is a random or guild quest: I'd suggest you just ditch the quest and try a different one. Failing quests is no big deal; you can always take another. DF quests are like wives in that respect.
2b. If it is a main storyline quest, well. That svcks then but no real reason to start over. You don't have to do the main quest to enjoy the game. I played the game for 11 years before ever attempting the main storyline. And I'm awesome, so being like me is ok.

Also: repeat this Daggerfall mantra:
Save Often
Save before Quests
Use Multiple Slots
Seriously, keeping a Main and Quest slot for each character is pretty smart.

edit2: Oh yeah. And make sure you're patched to version 1.07.213

I reinstalled the game and the freezing continues.. It's not a main quest, but the problem is that whenever the quest timer runs out... the game freezes anyway. Fortunatley it has nothing to with the main quest, but even then I cannot continue.

I will install any patches that have not been downloaded yet so I'll get back to you on that.

Also, the instructions say to do so, but I have to ask anyways: you are running the game through DOSbox, yes? If not, there's your problem. The game is far more stable in DOSbox.

I in fact downloaded it from UESPwiki, and through some french site, but it does in fact run through DOSbox... so.. That means I have to type in the setup manually with Daggerfall thru DOSbox?? That's a headache, seeing as how I've always had trouble with typing commands in DOS, it's a pain in the ass.