#1 rule of Daggerfall: save often!
#2 rule for Daggerfall: use multiple slots for one character!
First is because the game can crash randomly. It doesn't happen nearly a often as people like to say, but it happens.
Second is because saves can get corrupted. You'll be glad you had a backup if this happens.
Mouse Freelook: Yes, Daggerfall can be configured to use mouselook so it plays similar to Morrowind. Hit ESC -> Controls -> Mouse and switch it to View.
Now with the rest of the controls, look for "activate center object." This is what you use to 'click' on whatever you're looking at. However, there is no crosshair to help you point at something; luckily you can always "activate cursor" to get your pointer back when you need it. Helpful for when you have to pull a lever or pick up a small vial from the floor.
Horse And Wagon: General Stores sell horses and wagons, in addition to the usual stuff. Horses can be ridden by pressing T, and also really speed up your fast-travel time. Wagons help you carry a ton more stuff--however, they cannot be accessed while you are in a dungeon. Clicking on the dungeon exit while inside a dungeon will ask you to either exit the dungeon or access your wagon without leaving. It is nice that you can access your wagon without leaving, because if you leave the dungeon will reset!
NEVER BUY MORE THAN ONE HORSE OR ONE WAGON. The game will glitch. besides, you can never sell them back, so you'll be stuck with them forever.
Daedric, orcish, impish, etc. are languages not armor skills. There is no armor skill. Language skills are largely regarded as useless. The speechcraft skills are etiquette and streetwise.
There are also good guides around at the UESP, http://www.izhtex.com/tes2/, and I also have a guide on http://www.gamefaqs.com/computer/doswin/file/29065/50211, to name a few.
I wish they would pin this topic and the one on installing Daggerfall, I had to dig to page 6 to find this topic just now, and it was on top just a little while ago!