Too fast... can't change system...

Ok, you are throwing things at me too fast. If I miss something, it’s not necessarily intentional.

Rob, some of your points:

-Dwarves are clumsy, orcs ugly, I got it.
-Yeah skill costs will need tweaking
-I am capping skills because if you don’t it just gets relativistic. Virtuosity asymptotically approaches some limit. I mean who is better, Chopin, Mozart or Beethoven? Anyway, I think if skill levels can just go higher and higher, it becomes pointless. Ok, so maybe a work of genius is +19. Lock-picking and poetry are general skills, not capped by ability scores. You can make your savant.
-Herbalism/healing needs to be toned down. No problem. -Done.
-Wait, +3 is bad? Yeah. For skills, low is better. Tough luck. Do the math. Gary Gygax got away with that crazy THACO/AC shit which was much worse. Kids need math these days anyway.
-Yeah, I’ll deal with armor repair in the skill. I will also make that rule optional. I know what you are saying about it being a pain in the ass. Blame Eddie, that one was his suggestion. By making it tied only to 20’s, I tried to make it infrequent as it is. Still, it makes sense.
-Subdual and stunning. Yeah, I’ll look into it after these things are flushed out.
-Losing spells is harsh. However, we used to play that the caster was vulnerable until their initiative, then the spell was lost. This casting time is generally a smaller window. So, losing spells sucks? Get a fighter to interpose. If you read the initiative rules, you will see that it is very difficult to effectively defer initiatives too. -I think combat is too chaotic for a lot of that.
-Ambidex is now more expensive. At best, it just adds one attack per round. –You can’t use any fancy skills with that attack either.
-Critical hits are optional because they are so fierce. Strictly for the hardcore! Jump! Jump! Jump!
-I fixed the hitting a restrained opponent rules. Good point.
-The casting failure means spell lost, no action. Thus, I’ll keep it low.
-I bet 20 good lashings with a whip could knock you unconscious. C’mon, it can’t do zero damage.
-Caster level cannot interplay. It has nothing to do with the caster’s ability in this system. Thus, I am using caster’s circle. Maybe we can work that into resistance. -If it will add anything. I want to keep things simple, if not elegant.

Dave:
-Those phases of the moon were light-level examples, not literal situations. I’ll make that clear.
-Now that stats can be increased, skills, although they are capped by stats, can now be uncapped by improving the stat.
-You right about the class thing. I want people to be able to play each of the classic archtypes if they desire. That’s important to me. Thus, charisma is now in.
-Stat bonuses aren’t really necessary now if stats can be improved. Of course, it’s costly.
-Yeah, no random stats. I got it.

I think I’ve gone a long way to solving the ability/proficiency problem. I think it is going to lend to much more well-rounded characters. Check out the next version.

Once again, thanks for the critiques. I honestly think it’s making for a better system. I’ll send version 2.0 tonight.