Thanks for the suggestion. I will try that next. In the meantime, (not really knowing what I am doing), I ran the Tools / Correct Skin Errors option on the skin, deleted all the leftover hints, deleted attributes that looked like they shouldn't be there, used existing bitmap backgrounds for backgrounds that were missing, randomly used a "rollover" button to replace a missing image for Button4 (which says "system button" beside it), and changed the titlebar height? captionheight? from 23 to 46.
Now the successive word styles and formatting dialogs do not march downward any more. But they slowly march to the right, a few pixels at a time.
I'm guessing that maybe the captionheight being 23 told windows the dialog was shorter in height than it really was, so when I increased it to 46 (thank heavens for the SS error message), windows could calculate the proper height for the dialog window.
Now there must be some equivalent thing for the sideways motion. I'm not getting any skin error messages any more, so no more easy help from the system..

I looked at the window borders fields, and everything looks more or less symmetric except for the side margins. Left frame edge margins are ",,46,19" and right is ",,47,12". Could that be the problem? I don't know what the numbers mean.