I'm in the process of installing Daggerfall, but I'm stuck at step number 13. After I designate a location and click "Go ahead and install the game" it tells me I don't have enough disk space. Since I have nearly 70gb of free space I have no idea what it's talking about. How do I fix this?

You need to make space available for the newly mounted harddrive space by adding -freesize 1000 to the end of the mount command. Example:

mount C D:\Games\Dagger\ -freesize 1000

I did that already.

Okay maybe I mistyped something. Thanks

Make sure you include the spaces. I do that mistake sometimes (there's a space between "\" and "-" for example).