Okay... Don't feel bad, there were some bugs in your way on this one. :/
One, the wizard for some reason had the ability to destroy equipment in melee. This has been fixed; he can do it through a spell but he isn't gobbling down your magic staff.
Two, his hit points were NOT being tracked correctly. I had to change the save game file to fix this; the GAME file on your disk has been updated so it's usable.
I also increased the wait time on displays in several places, they were moving a bit fast and were hard to catch at times.
Finally, I did test these changes out to make sure that they worked, and I was able to defeat the wizard with that saved game.
I'll be updating the main thread with the new version of the program too.