I was cleaning up my computer today and discovered that I had Daggerfall installed. I had totally forgotten it was there. I know I never finished playing it to the end a gazillion years ago and thought it might be fun to give it a try (even though I don't have the Prima guide at this time).

The graphics seems really pixilated, more than I remember. Is this typical or is there some settings I can change. I can barely read the text on conversations, etc.

Have a look at http://xlengine.com/.

Are you saying you have used it and it works well? I'm currently running DOSBox to play. Does this replace that? Can I use my existing install of Daggerfall or would I have to reinstall?

Thanks in advance!

DaggerXL isn't finished yet, you can't play the full game with it right now.

Yeah, I went through all the steps and it crashes when I try to play DF. I guess I'm stuck with super choppy graphics, which is to be expected with games this old. I just didn't remember it being this bad when I played it the first time. Of course that was a LOT of years ago and my eye sight was better then.

From: http://theelderscrolls.wiwiland.net/?title=Daggerfall_:_DaggerfallSetup_EN

Smooth graphics
You can playwith Daggerfall default graphics, but you can also use a filter for have a smoother Daggerfall. Open the DosBox.conf file with a text editor and change the following :

Search the line output=Surface and replace surface with ddraw, opengl or openglnb.
Search the line fullresolution=original and replace original with your screen resolution (1024x768 by example).
Search the line scaler=normal2x and replace normal2x with normal3x, advmame2x, advmame3x, hq2x, hq3x, 2xsai, super2xsai, supereagle, advinterp2x, advinterp3x, tv2x, tv3x, rgb2x, rgb3x, scan2x or scan3x (You can see examples here).
Save and exit "dosbox.conf".

Hope that helps ya!

P.S. You might also wnat to go to uesp for the DF official and unoffical patches.