I decide to dabble in a save editor for Daggerfall so I could manually raise my etiquette to max so people wouldn't be jerks to me all the time. I ended up going with DagEdit because it seemed to fit my needs and easy enough to use. So, as you would imagine I went to my Daggerfall directory to copy it so I could paste it in DagEdit, when I discovered none of my saves exist within the directory. It has the SAVE0-5 folders, but they are all empty. I simply do not understand what is going on here. When I run Daggerfall all my saves are there for me to use and enjoy, but they do not exist in the directory. I thought they might be saving somewhere else like the DOSBOX directory, but no such files are to be found there either.

Has anyone else encountered this problem or have any idea how I can solve it?

If it helps, my Daggerfall install came from the DaggerfallSetup.exe you can get from UESP. Very first link on the downloads section.
The Daggerfall directory is C:\Program Files\Bethesda Softworks\Daggerfall