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Yup, I raised him (those Werewolves battered him around pretty good....:))
Yup, 1 dex (3 with gloves +2), no effects on him (poison, disease, curse. ect...).
My Dwarven Barbarian has lost 15 of the 16 points he had in his dex. The only thing that I could have encountered, that might have done it were...
You have to equip it like a weapon