I've made a few changes to the MAGIC.DEF file to correct a couple of errors. I've uploaded it to: http://slushpool.fortunecity.com.
This 2.1 kb file fixes the mixed-up Leaping %it and %it of Venom Spitting. The effects of these items have been exchanged: Leaping now casts Levitate when used, and Venom Spitting enhances skill Dragonish. I have also changed the effect of Cursing %it to cast Paralysis on strike to avoid the duplicate effect of cast Toxic Cloud.
I'm working on some other things, mostly larger fixes at the moment involving faction.txt and some graphics. Still planning an engaging quest pack.
If you are interested in hacking on Daggerfall: I have some useful information not posted yet, thoughts on how to fix certain bugs, and if you have ideas of your own that you want to work on it would be great to not duplicate our efforts.