Starting issues:
OK, so I killed a couple rats and some bats, took a couple tries but some guy name "archer" standing behind a some tables, took his armor and sword( looks like a one handed claymore) . I move to the next room over, with a very large/wide staircase and this skeleton comes down the staircase, kicks my butt, over and over again! I can't even get 1 clean hit on him that shows blood. Is there a strategy to fighting skeletons? I tried hit, back up, hit and back up, but he makes up to much ground on me that he eventually backs me up against a wall.
I left the game speed on average, can I change the game speed during the game?
Also, I can't for the life of me figure out how to pick up/grab things when I'm in mouse view. About the only thing I can figure out how to do better is move/walk/look in mouse view, I really don't want to get stuck playing this game on the default, because I don't have 3 hands, LOL. Anybody help?
Ahh, good ole skelly. Don't forget the floor around the bottom of the staircase is big. You don't have to back up in a straight line. When skelly raises his axe, there's usually a pause before he swings. When skelly raises that axe.. move. Also, if you're fighting with an iron weapon that may also be the problem. Skeletons can be hit with iron, but iron is so bad in Daggerfall that there's a penalty for trying to hit with an iron weapon. Did your character start with an ebony dagger? Many custom character types in Daggerfall can wind up starting with an ebony dagger.
Otherwise, you might want to just go around the skeleton. Instead of going up the stairway where the skeleton is at, go past the stairway and look over to the right, just past the stairway. You might notice the outline of a secret door. There's more baddies beyond that door, though so be careful.
If you don't mind spoilers or getting help-
http://www.uesp.net/wiki/Daggerfall:Privateer%27s_Hold
The 5th picture down shows the staircase and the secret door I was talkin about.
Keep in mind, Privateer's Hold is actually kinda nasty for a 1st level character. Once you're out, you can breathe a little easier.
Game speed - Once it's set I don't think you can change it.
Picking up/grabbing things - what are you trying to pick up? The only real things you can "grab" are loot from fallen enemies or a "pile" of treasure. Everything else is eye candy.