Well, got to lvl 3 on daggerfall recently, got the letter telling me to talk to Morgiah at Wayrest. Did so, or at least attempted to do so but can't for some odd reason. I keep getting nothing when I attempt to talk to her.

I suppose the first question is to make sure you're playing the latest patch. By this point, considering where you'd have to get the game from, that's probably true, but it can't hurt to make sure.

If not, you may have simply run into the game randomly deciding to bug out. Do you have a save from before you got the letter? You may have to reload from there and try again. If that doesn't work, it may be that character's game itself that's bugged, which is sadly plausible when it comes to Daggerfall...


(...Also, I have a strange wish to go play Pharaoh again for some reason. )

Well blast it! I have the patch but no prior save. Oh well, time to get rid of that character