This guide is written for vanilla Daggerfall.
In vanilla, the controls are by default set to the extremely old-school and (to me at least) terribly awkward cursor-movement settings. This makes the game much, much harder to get into than it should be for new players.

If you are using Daggerfall Unity, you already have these settings set correctly and do not need this guide.

When ingame, press ESC to bring up the settings menu.

Click "Full Screen" to remove the big HUD from the bottom of the screen.














Now click "Controls" and then at the bottom of the next screen: "Mouse"











Change the mouse controls from "Cursor" to "View"


















From here you can then press "Continue" to go back to the keybindings.

Here is an example of how I have my Daggerfall controls set up for WASD.
Copy this or make adjustments to fit your playstyle.

Note in particular "Activate Center Object". This works much better when set to left-click. Then you just click doors, people, levers loot etc to interact with it.