Now our DM has had some issues over these sessions that we keep trying to work out but he keeps basicly saying "I altered the rules a bit because I didn't like (fill in the blank)."
and really this would be perfectly okay if it didn't effect gameplay for the players in such negative ways
I don't think it'd ever be ok. I try to make all my changes before starting a campaign for ample notice. If anything comes up during a game that I realize I want to houserule, unless said thing REALLY bothers me, I will follow the rules as written for that session and declare the rule changed for any future sessions. And pretty much the only times I've made on the spot houserules, it's been to the players'
benefit. Because "I'm going to change this immediately to such a way as to screw you over" just screams "I'm a dick!"
---Problem---
The first issue was that he was unacceptably stingy on wealth, we started the game with nothing because we were immediately captured and sentinced to death (and escaped) now we a fair ways in but at level 3-4 we have a total wealth (including gear) of around 200gp per player because he "doesn't like treasure tables, they are to random" and "I don't follow the exected wealth because it tries to make things to precise"
this last seasion we killed something and he rolled a 1 on the treasure table and we got nothing so he said "see treasure tables are to random"
how are we supposed to get equipment at this rate?
You can't, and that's his intentions. Like others said, play a sorc with eschew materials. They literally need nothing to cast their spells. Avoid being a warrior or rogue type in those sorts of games as much as possible. Divorce yourself from needing magical loot to function. If you're willing to store some holly and mistletoe in...dark places...druid can also work. Yeah, their foci are literally FREE, but don't put it past a DM like this to rob you blind even of that and stick you in a desert.
Second is that he makes puzzles that adapt as we try to solve them, an example of this was:
I was sleeping in at the Inn (in the basement, by myself because the rest of my party was mad at me) and at 1am 2 people came down the (please note this) stairs, they were trying to move silently and one failed (rolled natural 1 + 3) so I got a listen (rolled natural 20 + 10, DC 11) check and I heard them and woke up. Now they picked the lock (with mage hand, which doesn't make sense to me since they didn't even have to roll anything) and entered the room (I was not allowed to move till they had entered) now since I was awake I recognized them as HawkeEye and Scorpion. They demanded something of mine, blah blah... I said no... they wanted to start a fight.... DM opened up a grid (we can now see what the inn looks like, basicly a 10 foot wide hall leading to a small room) and we rolled initiative. Scorpion and I tied (Scor rolled 8 + 3, I rolled 7 + 4) he said we needed to roll d20s with no modifiers to see who would actually go first (I thought it would be a Dex check but didn't say anything)
Scorpion won so I went last... they attacked me and did no damage but blinded me, I turned invisible with ghost step(Ex ninja ability) and ran for the door I got into the hall and ended my round they attacked and failed horribly. I tried to use a Martial Manuaver from my swordsage levels but the DM said that I had been asleep so I couldn't use them (please someone tell me if this is true). so I said that I am running upstairs. The DM looks at me funny and said "um, it's a ladder". We were all like WHAT??? but whatever, I said that I would climb the ladder. DM says you are at the top. I say I'm going upstairs. He says "you push on the trap door but it seems stuck, it sounds like the Innkeeper is standing on it" (at 1AM mind you). I say "I am gunna push him off (I know I have 17 str so it shouldn't be a problem)". He replies (with a single roll ever being made) "the ladder crumbles beneith you, it was just to much weight for it". I am in total shock right now... these events are just totally unbelievable. I succeed on the check to keep from falling prone. I am still invisible but my opponents have "pinpointed me" because of the ladder problem, they are both ranged attackers so they both fire down the hall and hit me. They are still in the room so if I move 5ft. up they cannot hit me anymore without coming out of the room so I say thats where I am moving. The DM replies " actually it is only a 5ft. hallway its not really 10ft.
The initiative rules are such that if there is a tie, higher bonus wins (this is true of all ability and skill checks; initiative is a dexterity ability check). If the bonuses are tied, only then do those tying creatures roll off to see who goes first. Regardless, they both go before and after anyone who rolled lower or higher than them (respectively) in the first place. The guy who rolled below both of you should have gone last.
Once your maneuvers are readied, they stay readied until you change them to different readied maneuvers. The only thing sleeping forces you to do is spend a swft to enter a stance, as I don't think you can maintain your stance while sleeping. But I may be wrong there.
Did your "friends" have to roll a % die to see if they hit you? Even if they know where you are, if they can't see you, you have a 50% miss chance.
Only other comment here is your DM was pulling changes to the scenery and rules out of his ass, that was total bs, etc, etc...
Now seriously I thank you if you have read this far but as you can see this was not exactly the fairest fight in the first place, and to make matters worse the DM was in my opinion crushing everything I could possibly do to survive. In the end I ran out of Ghost Step uses and had to surrender and give up my items to my friends (this was fine, I took them back later) but the scenario adapted to counter my every move.
Is this fair play by the DM?
No. DMs aren't supposed to metagame (use knowledge he has in the real world about creatures or other things that his character should not have), but this is beyond metagaming. He's literally changing the world on the spot just to screw you over. Drop this DM. Try the gamers seeking gamers forum, get into an online game if no one else in your area can DM competently.
Now I thought this was supposed to be an encounter right? Not a "you will now die". The whole issue was solved and it had NOTHING to do with anything it was just a "you have been captured" moment with no real purpose at all, they gained nor lost anything from this encounter, it was just a really big pain.
He wanted them to be captured, he could've just made it a cutscene. Also, I find it funny how poor you guys are yet those bandits were blowing through poisoned darts like they cost the same as a regular blowgun dart. And yes, the blindness was also bs.
I know that technically a DM can send whatever creatures he wants at you
but was this really a valid way to DM, personally this is how you lose players.
No. DM can technically send anything at a party, it doesn't mean he should. Just like you can technically do a lot of things, it doesn't mean you should. Leave his game.
He claimed when we first started that his puzzles "didn't have loopholes" well I now believe him, it is because he seems to just make them up as we go and just counters all solutions until we find a non-loophole solution.
Creative solutions aren't loopholes, and they're what makes pen and paper games different than video games and computer RPGs. If there's only going to be one method to solve the problem, a computer can handle that much better than a human.
This got quite long winded but I was wondering what we could say to the DM to make him reconsider his DMing style or a way to "from the rulebooks" make him less I don't know... mean?
How old is he? If he's older than like...20, it's likely a lost cause. If he's still fairly young you might be able rehabilitate him yet before he gets stuck in his ways. Of course, the easiest way to do that is to show him how a good game is run...
That's fine... provided the DM informs the players of the changes. It's not fair to players to have them assume the rules work one way (as written), base choices on those assumptions, and only then find things work completely differently.
Absolutely.
This is the only part of your post where I feel you are being unreasonable. The answer to your question is clearly "you're not". The DM is running a low-treasure game, and that's a valid game style. He should probably have told you up-front that that was his style.
I disagree. Low treasure games destroy the already laughable caster/noncaster balance and completely wreck the expected challenge of the party towards foes. If you wanted it to work, it's possible. But you'd need to make MASSIVE changes to the game. IME and in the OP's case, a DM who declares a "low-magic" game either is out to (intentionally or unintentionally) hose noncasters as much as possible or thinks a "gritty" game is somehow more realistic despite still allowing people to play casters. Or both. "Low treasure" is not a valid game style in D&D, unless "the game still working" is not a requirement for something to be valid.