My Stealth-2 fretless came with a set of tools in a little plastic package.

On that package, it gives the following instructions as to how to adjust the truss rod:
TO ADJUST THE TRUSS-ROD

TURN 4 mm KEY TO THE LEFT (ANTI-CLOCKWISE) TO BOW NECK FORWARDS
TURN 4 mm KEY TO THE RIGHT (CLOCKWISE) TO BOW NECK BACKWARDS

**But when I turn the key left to bow the neck forwards, which I wanted to do to DECREASE/LOWER my action, thus bringing the neck up towards the strings, THE OPPOSITE HAPPENS, and my action increases.

Now, I know that Rob changed the truss-rod functionality at some point, but is it possible that my Stealth-2 simply was sent with an older set of instructions for the newer truss-rod turning functionality?

In any event, I'll just turn it either way SLOWLY until I get it the way I like it, but I do want to make sure I know what is up in case another bass tech. tries to set up my bass on the road and they might be unsure. :)

Lastly, is there a name for the "center" of the truss rod when there is total lax/loose feeling before the truss-rod catches and starts to turn again?

No, those are the correct instructions for the current dual action truss rod they've used at Status since '98.

Would fitting the rod the wrong way round cause this issue? I find it hard to believe that a company of that standard and reputation would make such a fundamental mistake, however.

Could it just be the definition of forward and backward that is confusing matters ? The current Statii truss rods work as other basses, the old adage righty tighty lefty loosey works for them. So to decrease the relief of the neck and bring the strings closer to the fretboard would mean turning the truss rod clockwise. To introduce more relief would require and anti clockwise turn. To quote the instructions from my Stealth 2 sheet :-

"To adjust the truss, insert the 4mm allen key and turn clockwise to decrease the forward bow. Turn anti-clockwise to increase the forward bow."

From the Status website :-

NOTE : Until February 2003, all our wood necks and our graphite necks (those fitted with a truss-rod) have had a rod which adjusts using a 5mm allen key. Current models from around February 2003 onwards use a 4mm allen key.

Current models :
Push the 4mm allen key into the socket under the end of the fingerboard and turn it CLOCKWISE to bow the neck backwards and ANTI-CLOCKWISE to bow the neck forwards. This is the standard way most bass necks are adjusted.

I hope this helps :)

Cheers

Nick

Yeah, it's the forward and backward terminology. I'm one of those players that will tweak a neck for hours until it's "perfect". I tune my 6 fretless E-High F so I have to find that fine balance. ;)

You and me both Jay :)

Endless hours of fun tweaking and adjusting to get the right balance !!

Glad you got it all sorted.

Cheers

Nick

But my last question is, what do you call the lax/loose spot in the neck before it catches in either direction?

Got it!!! ;)