The inn gold "undocumented feature" is (ahem) fixed when you install the patch - alas!
The one you quoted isn't the best of the inn gold schemes but doesn't matter, none of them will work once you've installed the patch.
There are excellent ways to make $$ in the game. Making one of your characters a ranger and learning fletchery is very profitable. There are others listed in the Best Tips as well. There is also a good list of what the patch fixes and what it takes away.
Virtual Dub should have resolved your town problems. The patch will avoid any problems with the vampire ring. Of course, you can avoid those problems by simply not equiping the ring in the unpatched game.
Wyv