Glad you sorted it out, Davor.
If anyone else has trouble finding Daggerfall Jukebox, the direct link to official download site is http://www.dfworkshop.net/?page_id=61.
You can also find it on the UESP http://www.uesp.net/file.shtml?dagger/files/dfjukeboxsetup.exe, and Svatopluk's site http://www.svatopluk.com/daggerfall/download/jukebox.stm.
Once installed, you need to point the program to the ARENA2 folder of your Daggerfall installation or Daggerfall CD. If pointing to a Daggerfall CD, the program will automatically unpack the required files from PACKED.DAT.
As noted above, you'll need to manually hit the Play button in Windows 7 - and you might experience tracks being "stuck" in the player. For a program I wrote 7 years ago, I'm pretty happy with how it has performed so far.
All the same, I'll look into updating the program for modern operating systems.
Edit: I just realised that Daggerfall Jukebox was released 19/11/2002. That's 7 years to the day. Happy birthday DFJukebox!