Mighty Linux Man: This is the second time I have heard about a bug that causes stats to drop in the DOS version. I'm glad that's a bug, and not part of the game, because it's driving me nuts. Maybe I'll try the Apple II version at some point. Having your party members being constantly downgraded at level up is nuts.
Stats are supposed to drop occasionally at level up. The intended mechanic is that each stat has a 75% chance of changing, and if it changes, there's an (age/130) chance of the stat going down instead of up. Special cases are that a stat that's 18 won't increase and is unlikely to decrease (1/6 of normal chance), and that if Vitality drops below 3, the character will "die of old age" and become LOST. (Yes, this means that, if you get absurdly unlucky (or if you're using save states to force this to happen or something), a young character can die of old age, as long as the character's age isn't somehow 0 or negative.)
In general, if the character is relatively young, your stats will increase over the normal course of level ups, and you'll have all 18s at higher levels.
In the DOS version, stats decrease far more often than they should, which means a couple of my claims no longer hold:
* Young characters dying of old ate is now something that can reasonably happen through normal play.
* Your stats aren't going to tend to all 18s, causing it to be much harder to change to Lord or Ninja.
* There's also been reports of stat underflows in this version. They can happen in the Apple 2 version, but that's incredibly unlikely if the character isn't exceptionally old. (NES version, I believe, imposes a 3 minimum on stats other than Vitality, and Vitality has a minimum of 2 (in case you somehow cure the LOST condition).)
Edit: Of course, this is assuming you're not playing the remake, or you're playing the remake with random level-up stat increases ON.