Sorry for performing thread necromancy, but it seems like the arrangement he mentioned he was doing for a student has been finished and is on his http://heberlingmusic.com/audio.html. It's down at the bottom, named "Daggerfall suite".
Thanks for posting that; it's incredible.
The more I think about it, the more I appreciate the effect Daggerfall's music had on making the game extra special - especially at night. I don't think petitions do much of anything either, but it would be fantastic if someone could get gamesas maybe thinking about bringing Mr. Heberling on for the next game.