One thing I always wished, from the first time I ever got the "duel so-and-so" quest only to find it was in a secluded house instead of out on the open streets, to the days I ride my horse through the streets of Daggerfall filthy stinking rich, was for more fighting outdoors in towns - and not necessarily only at night like in Arena, but in the daytime as well.

However, two strange events have occurred to me on a new character:

1) When I first arrived at the gates of Daggerfall, there were some human archers lined up a ways outside the city walls.

2) I once left the mages guild in a town to find a human fighter named "Barbarian" outside waiting for me.

The inner workings of Daggerfall are known to none; does anybody have any idea why these may have happened, and how I could get them to occur even MORE?

There are some quests with an outcome where a rival of yours will send hitmen after you after the quest completion.

The barbarian and the archers might have be some of those. Or they can also be NPCs who were also involved in a quest in progress (Like breaking in a house guarded by a barbarian) and who constantly respawn until you finish the said quest.

Either way, looks like someone wants you dead.

1) When I first arrived at the gates of Daggerfall, there were some human archers lined up a ways outside the city walls.

If it is as Cliffworms says (and it may well be, and good call CW), you will want to end quests like this before too long; the bad guys' treasure doesn't get cleared out from iteration to iteration of assassin waves, and they get new treasure with each wave, so while you can use this exploit to get really rich (and increase your Mercantile), eventually the game will start glitching due to its inability to handle so many slots of treasure on one monster.

There are a few quests that can send assassins and mercenaries after you, either during or after, as Cliffworms said. They can also come as a result of the MQ, after you snag the totem. Someone else (James) may have a better idea of which quests they are, specifically, but I believe they are mostly merchant quests.

I know the rivalling factions who want the totem send assassins after you, and I believe , but this occurred to me on a new character, straight out of Privateer's Hold. No quests acquired.

Fighting in the streets of DF is a whole lot of fun... Maybe the barbarian spawned at night and hung around till you went outside again?

Enemies in Daggerfall don't seem to spawn at night in towns/in the wilderness unless you rest until you are told that "There are enemies nearby."

I know in the case of the barbarian outside the smaller town that it was my first time going to that town, I went into a shop, went out, and it was there. I didn't rest.

When you fast-travel with the "recklessly" option, you can arrive in a city at night time and be ambushed by NPCs on your arrival. Did you do this? Maybe you didn't saw him. The NPCs who spawn near you can sometimes wait for you outside.

The same thing happens when you get banned and expelled from a city. They kick you out at a very low health and a band of NPCs wait for you to finish you.

Stonefrog states that he had acquired no quests, so my best guess is this is the result of reckless travel.

Off the top of my head, the Lord K'varr quest, the "return the Witch's waif", and the "Orcs want this item" quests all spawn hunters. There are several others.

Ah, yes, the "Orcs want this item" one seems to spawn them practically each time you sleep. One time I was spending time in an inn and after about every half hour of rest (I was trying to get 14 or so), an orc or two spawned. I got this hilarious screenshot of the tavern floor littered with Orc bodies.

Unfortunately, I have since lost that. I ought to recreate it.