Ah, it's a version incompatibility issue. It runs correctly in 2.0, but in 1.3, it misplaces and overlaps the letters, as you described. Apparently _FONTWIDTH and _FONTHEIGHT are not processed the same in the older versions.
Try this, if you'd like to see the real puzzle...
Change this one line in the PSL() sub...
_PRINTSTRING ((x - 1) * _FONTWIDTH, (y - 1) * _FONTHEIGHT), t$
to...
_PRINTSTRING ((x - 1) * 36, (y - 1) * 60), t$
That should do it.
BTW: What's the version of QB64 you are currently running? $COLOR:32 is another one that won't run in 1.3, but I believe does in 1.4.
Pete