this was in the nineties and it didn't have good ol FPS-type movement a la Doom? I'm a little surprised.
Doom didn't have FPS-like controls. I remember well having to use the arrow keys to move and turn, and strafing was something you'd rarely do, and the mouse was near useless.
Daggerfall, though, does allow for WASD/mouse-look controls. Look through the control options to rebind the keys, and the mouse options for view-based movement. The only thing that's really missing is a crosshair.