I had the same problem initially in getting my character to look around but I just hit escape and fiddled with the controls till they worked alright for me. And well... after wandering around the initial dungeon it gets better haha (I had the tutorial going to get used to the gameplay, it also helps you get to the right area to start the main quest or whatever else you want to do after you get out of the dungeon.) So in short, yes I would definitely suggest you give it another shot!
Did you already have it on CD or did you download it? Also did you get the DOSbox as well? There should be instructions on the download page for it that you can follow: Daggerfall Instructions
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