Originally Posted by Jaz 
When I last replayed Daggerfall in 2004, it was on an old PII (300MHz) machine/w Win 98. No DOSbox involved. I installed the official 20 MB patch that came with my copy of the game and encountered no error apart from the usual bugs (holes in floors etc., nothing that couldn't be remedied by pressing an F key).
The computer suicided after I finished the game, but I finished it (once again).
That sounds great! You absolutely need a new oldie pc though