All right - here is a try to describe the meaning of all character statistics in the game. Can somebody more knowledgable then me correct any mistakes?
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Life -- how much damage you can take before you die)
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Damage (lowhits - highhits (+ bonus)) -- how much damage you cause IF hitting somebody. You cause somewhere between lowhits+bonus and highhits+bonus. Bonus is computed as Strength-15.
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Armor -- affects how much damage you take IF somebody hits you. The exact algorithm I do not know. Note that this protection does not apply to undead creatures.
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Strength -- Affects the size of the bonus in Damage.
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Dexterity -- Affects the probability that you hit something. I have no idea if the probability is also affected by size of the weapon, strength, size of the monster, armor of the monster etc...
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Vitality -- Affects how much Life points you gain when going up a level. You gain as much points as you have Vitality points.
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Speed -- Affects your speed of travel (note: NOT speed of attack). With higher number you can run faster and escape monsters.
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Marksmanship -- no idea what this is for, can somebody help? (AAC?)
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Luck -- affects how much things monster drop. Does not seem to affect ammount of gold dropped.
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Undead protection -- protection against undead characters. (Does this number work the same as Armor number? Or rather as a Dexterity number?)
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Mind protection -- ?? The same as above but for mindbenders?
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