I did all that the Dos needed and all the things bethesda told me to do, but it always says i dont have the daggerfall cd in, and i downloaded it off TES web site.... When i go to press Enter after typing DAGGER, it just wants a cd...

When you mount the cd drive, the -label Daggerfall part is case sensitive.

I did that. I re-did it like 40 times

One can try looking into this thread, http://www.gamesas.com/?showtopic=1012957 if it might help install the file.

All else fails, there is the installer for http://theelderscrolls.wiwiland.net/?title=Daggerfall_:_DaggerfallSetup_EN.