Stats

Strength: Your physical power. Your strength regulates how much you can carry, how much damage you do with each hit, and how much damage you take from various sources. Also factors into your HP and SP.
Increased by: Fighting, arm wrestling, doing any physical action.

Intelligence: Your brain power. A mind is a terrible thing to waste (unless you're a Fighter, of course). Intelligence factors into how much damage your spells do, as well as your MP.
Increased by: Solving puzzles, casting spells, learning things, making complex manuevers in combat.

Agility: Your grace and speed. A high agility makes for a crafty mover, able to cross the narrowest ledge and leap over tall buildings in a single bound. Factors into your SP.
Increased by: The acrobatics instructer, using thief skills, dodging in combat.

Vitality: The most important stat in the game, IMO. This is your overall physical endurance. The higher it is, the more damage you can take before pushing up the cacti. Factors into your HP and SP.
Increased by: All physical actions, taking damage in combat.

Luck: I have no idea what this does. If anyone knows, please e-mail me. I'm stumped on this.
Increased by: Doing ANYTHING!

Honor: A new stat, and a very important one for those who seek to be a Paladin. This is the measurement of all your good deeds and actions. It goes up with your good deeds and down with your bad ones.
Increased by: Doing good things (and staying away from the bad ones)

Weapon Use: Your overall skill in weapons. The higher the score, the more accurate you are in combat.
Increased by: Practicing in the Guild Hall, attacking in combat.

Parry: Blocking attacks can save your ass in combat, if done correctly. The higher your skill, the more successful you are in blocking attacks.
Increased by: Blocking attacks in combat.

Dodge: Fly like a butterfly, sting like a bee! Anyway, your dodge skill allows you to sidestep attacks with greater ease.
Increased by: Dodging attacks in combat.

Stealth: The MOST important Thief skill in the game. You need to sneak around often; after all, waking up the neighborhood is NOT a good approach to taking everything that's not nailed to the floor. The higher the skill, the more successful you are at sneaking.
Increased by: Sneaking everywhere.

Lockpicking: Another important Thief skill. If you have knowledge in the techniques of a lockpick, you can open any door that isn't barred or deadbolted from the other side.
Increased by: Picking locks.

Throwing: A skill used by Fighters and Thieves. Your skill in throwing things at the enemies before they reach you. This can also be used to knock things over from a distance.
Increased by: Throwing stuff.

Climbing: The last Thief skill. Scaling a wall isn't possible until you know how to climb one, and even then, you have to practice. A rope is no different...
Increased by: Climbing stuff.

Magic: Your abilities in the arcane and occult. Wizards, naturally, need this skill for their spell casting. Factors into your MP.
Increased by: Casting spells.

Communication: Your oral abilities. You need a high communication in order to get your points across, as well as to bargain at the shops and stalls in Shapier.
Increased by: Talking to people, attempting to bargain.

SP: Your stamina. When it hits 0, any actions that take physical effort will drain from your HP instead, until you die. This can be restored through use of Vigor Pills and sleeping at the Inn.

MP: Your magical power. When it hits 0, you won't be able to use any magic. This can be restored through Mana Pills and, of course, sleeping at the Inn.