Wonderful post and I'm happy you've been able to experience DF. Now wait til you get to the main quest. It's sick...I'm telling you, it will ruin the MQ's for most other RPG's and destroys those in MW and Oblivion. Somehow, the music in DF immerses me more than the music from MW and Oblivion also. Such a great game. Congrats and enjoy.
A few years ago there was a remake project going on, and a very talented fella composed some of the Daggerfall music for it. They're still online here:
http://www.rhmusic.net/dfmusicproject/music.html
Just listen to 'Treading Winter' at the very bottom. I STILL get goosebumps at a certain part in it... when you hear it, you will know exactly where. If you're nostalgic or very much enjoying the music of Daggerfall for the first time, you may find yourself with them too.
I really, really wish he was able to complete all of the major pieces from the game.