I followed those instruction and everything worked except for when i wen to load the game. i typed in dagger and pressed enter as it told me to, and the prompt told me that i didnt have the cd in the cdrom... maybe i didnt properly setup the emulator? idk... anyway, even without those instructions i was able to install and patch the game.
Be sure you write "mount d c:\dosgames\dfcd -t cdrom -label Daggerfall" correctly, especially the "-label Daggerfall" should be
Daggerfall, not daggerfall or dAGGERFALL or anything like that, just Daggerfall.