Questions in reguards to the feasibility of Overhaul Mods

[Zarrgon66]

Prologue:
Hi, I've just come back from a few months break, during that time I was producing my FMP [Final Major Project] for my college game design course, I planned to do a demo for a game in the same vein as Daggerfall. An RPG with the basic plot set-up and setting established with a limited derivative form of the world streaming mechanic is what I wished to accomplished, however, my computers fan baring snapped causing my computer to begin overheating at a drastic rate [even with multiple cooling methods employed at once] and due to my location, the need for me to be logged in for course sessions and the computer shop's workload I couldn't get it repaired [especially since the part required needed to be ordered from hong kong so it wouldn't happen until after the project deadline] and adding insult to injury all my colleagues on the course after months of being told that it was ok and encouraged to outsource work to each other [in case part of the project was either outside our specialism or was impossible] and saying they would lend a hand if I ran into trouble... said they couldn't me by rendering a basic test asset for me as part of image mock-up because it would take time away from there project and they wanted every second to spend on there projects as there computers were still working.

In the end, I reworked my project into a tabletop RPG system with an example setting and adventure seed, took longer then I was expecting and almost didn't finish it due to several computer crashes causing me to rewrite considerable sections of it at inopportune moments but in the end, I did it.

The Accrual Point:
even though I finished my FMP and awaiting its review, I feel unfulfilled, I'd been looking forward to my FMP all year and it turns into a hassle due to a spot bad luck with hardware, well I won't have it, I promised myself I would make a Daggerfall retro-clone and that's exactly what I'll do.

My Goal:
I wish to create an overhaul mod for Daggerfall unity, so I want to know the following:
1: is Daggerfall unity in a state where mods of such a nature can be achieved?
2: is this form open to the discussion, development and promotion of overhauls as they may not be related to The Elder Scrolls and may only have a technical relation to Daggerfall?
3: if overhauls are both feasible and Orthodox on this forum would fan game be ok or would they need to be purely original?
4: if overhauls aren't possible would using unity's code for an original or fan project be permissible?
5: if embarking on such endeavours are allowed, would anybody be interested in joining me in it?