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When I play Daggerfall I have a tough time getting behind an enemy to backstab them. How does stealth work in Daggerfall? Do you get it by walking slow? Do you get it when you walk at regular speed? I'd like to know if I'm making the most of my stealth-based character.

You get it when you sneak. That levels stealth. You level backstabbing when you hit monster's back, visually indicated as the back of their sprite. Successful backstab deals extra damage. Obviously enemies would turn around and keep their sight on you once they hear you, hence you should sneak, and do so efficiently.