1. Install Daggerfall where you want, then patch it. Don't do this in dosbox. (Mods can I link to the optional daggerfall installer? That's what makes this so much simpler)
For this discussion, I will note that I installed it to c:\OldGames\
MANY TIMES this is where the process fails as sometimes the files appear to be read only. If they are, nothing you do will work. Make sure you use huge install. Set up your sound card if you want. I'd leave it til it's running.
2. Download DosBox 0.72 and install it.
3. Open the dos box config file. Set memsize to 40, set cycles to auto limit 30000, if you have an LCD monitor set aspect ratio from false to true.
4. Open z.cfg in your daggerfall install folder. Change the path of the game to where daggerfall is installed. In my case: c:\OldGames\Dagger. (I am at work right now. If that doesn't work, leave off the dagger).
5. Make sure your CD path in Z.cfg is pointing to the correct location of your cd drive (usually d:\Dagger\Arena2
6. Run DosBox. Type the following:
mount c "C:\OldGames\"
mount d D:\ -t cdrom -ioctl
c:
cd Dagger
fall.exe z.cfg
When I get home I will look over my config files and make sure I have transposed correctly.
This is it. There's no mucking with sound files, no alchemy with moSlo or other wierdness.
There's no other tweaks needed. To anything. I know this is close to how others are written, but somehow, not installing with dosbox, not patching and a few extra config tweaks just made it all fall together for me.
Sound works like it did on the original release with a 486. I have a brand new win xp system that smokes and it runs just fine so far. It runs better than the Bethesda recommended version which WILL NOT ALLOW you to finish the main quest.
I will update this thread if any problems occur also along with any mistakes I made transcribing the process I used in desperation.