Because this is too awesome to keep to myself:

I found an installer for Daggerfall (they also have arena) that makes the game work in windows 7 without messing with settings or anything! It runs perfectly smooth and I know damn well I am gonna sink at least as much time into this game as I did in Skyrim, probably more.

Download it here:

http://theelderscrolls.wiwiland.net.....erfallSetup_EN