yes his rule since he started and still today is "If you need a new PC for any reason you come in with 0xp and no magic items" it gets worse since he isn't that creative really he almost always puts the character in chains captured as part of an encounter mid dungeon...so you start with no equipment. Over the years my own games and a few of my friends have picked up new players because people loose a PC in his game, and the player wont come into a level X game as level 1...
the funniest thing is somehow he is almost more likely then any of us to find new players. He always has 3+ new players even now...but his games also have more turn over then any other game I have ever seen.
and yes, he is very clear on what he expected me to do (not just me, but anyone in that postion)... Sit and only interact with other players who are not playing, and even then we shouldn't discuss the game. One of his 'metagaming' rules is if he thinks you get help out of game (even inbetween weeks), or if he thinks you looked up an adventure, or monster manual, then everyone gets 1/2xp for that encounter.... yes the whole party is penilized for 1 person.
Edit: I believe the only player who was playing in 98 who still played with the DM when 3.5 came out was the woman he married about that time... and the only player who still plays today who was playing when 4e came out is still his wife, like I said high turn over rate, I don't think he has ever in his life ended a campaign with all the players still playing that started
