Well I followed mechaexailious guide to running daggerfall on XP, and a long time ago it worked fine, but now I did it again and the sound lags and when I let go of the up arrow to stop walking, my character still walks.

Can anyone help me configure the settings so it works?

Mech's guide was for a pretty old version of DOSbox. Why not try a newer one?

How do I play with the new DOSbox?

Freddo's sticky in this forum works just fine.