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Obtain a Shuttle and become a Space Ace by destroying 20 enemy vessels, locating a Time Machine in the process.
Location
Castles
Notes
Will sometimes steal all of your unequipped weapons when adjacent; drops the key to a random prison cell
Killing the Jester gets you a key to one of the castle prison cells, but it also makes the Guards attack you. Whether you get the key to the Princess's cell is random. You can check your inventory to determine which key you got—you want the key to cell #2.
The Jester will randomly decide to steal your Weapons if you happen to be standing in an adjacent square, much like Bards in towns. They will steal all of your reserve Weapons, so try not to give them the chance. If possible, use a ranged Weapon to kill a Jester so you don't have to get near them.
The Jester will randomly decide to steal your Weapons if you happen to be standing in an adjacent square, much like Bards in towns. They will steal all of your reserve Weapons, so try not to give them the chance. If possible, use a ranged Weapon to kill a Jester so you don't have to get near them.

Appears on
This creature does not appear randomly
Jesters generally wander around being annoying, but can almost always be ignored. The notable exception is in New Jester, where a horde of Jesters will try to corner you, forcing you to fight your way out. There's really nothing good that can come of dealing with Jesters anywhere.

Experience
2
Jesters are weak foes and are rarely aggressive, but they can be annoying so I really can't blame you if you kill a few here and there. Interestingly, the only Jester in the game with a worthwhile hint is the one being tortured in the Castle of Lord British. (Maybe he was being tortured for not being annoying enough?)