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Put the cleaned and cut potatoes in a large stockpot with 1 teaspoon salt and cover the potatoes with water until the water is an inch above the potatoes. Turn on the burner to high and cook for 15 minutes from the time you turn the burner on. The pot will boil once it heats up.
In a skillet, cook the bacon for about 5 minutes over medium heat until cooked through. Then transfer the bacon to a paper towel lined plate and set aside. Keep the bacon fat in the skillet.
To the bacon fat left in the skillet, add the onion and saute until tender (about 3-5 minutes).
Then to the skillet with the onions add in the vinegar, mustard, garlic, salt and pepper. Cook over medium heat until the sauce thickens a bit.
Drain the potatoes completely and transfer the potatoes to a large mixing bowl. Pour the sauce over top the potatoes until coated. Mix in the bacon and fresh dill and serve!