Anyway, to the point.
I stopped off at the town of Penbrugh in western Daggerfall and was greeted by a message saying something like this: "No holiday divides the citizens of Penbrugh like the 3rd of Heartfire. Some of the older residents don't speak for the whole day for fear of evil spirits entering their bodies, but most people treat it as a celebration. But even the most lighthearted of the residents make sure they don't go out at night in Penbrugh on the 3rd of Heartfire." I had to explore this. Penbrugh ghosts? I think not!
I booked a room at one of the inns in the town and waited until 10PM. I ventured out into Penbrugh on the 3rd of Heartfire, even though I'd been told not to! What a rebel I am. Anyway, I explored for a few minutes, pressing the 'wait' button repeatedly to see if any enemies were near, found nothing and started finding my way back to the inn. As I neared the inn I pressed the 'wait' button once more. "You cannot rest when enemies are nearby."
I don't mind admitting that I crapped myself and ran around like a madman looking for the inn door.
Might just be one of Daggerfall's hurr messages, but the presence of an enemy in the town makes me doubt that. Is this a quest or something?