Thanks. That looks pretty cool. Seems kind of like an unofficial CS for Daggerfall. If so, then I'm sure there will be all kinds of Daggerfall modifications now that it has been realeased for free (I hope).
It's more than that. DaggerXL is a complete engine remake supporting modern computers and operating systems.
http://daggerxl.wordpress.com/ (Be sure to check the sections with movies and screenshots.)
http://daggerxl.50.forumer.com/index.php (Where the community can discuss DaggerXL, report bugs, and propose new features.)
There are plans for it to support modding, so it will be a new engine and a game editor.