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Originally Posted by GrimSloth
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In that case, can I ask if armor decreases damage by a % or does it reduce hit chance for the opponent. (like in Diablo 2)
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The AC statistic you see on your character sheet is a composite from several sources, and which influences both damage avoidance and damage mitigation. In other words there are different kinds of AC which do different things, but it's all called AC. Fun, huh? AC you gain from direct AC buff spells or from the equipment you wear improves mitigation. AC gained from the defense skill or from the Agility statistic improves your chance for your opponent to MISS you. Special skills such as Dodge or Parry depend solely on the value of those skills and their success rates are not modified by other statistics.
"Mitigation AC" such as from your armor affects your opponent's damage roll. Monsters in EQ score damage based on a random roll called damage interval, plus a fixed additional amount of damage called damage bonus. The fixed damage bonus is why monsters have a noticeable "minimum hit" that increases as you level. The damage interval roll is modified by AC--in effect the more armor you wear, the more the roll is weighted toward the lower end. You will take less damage over time if you wear high armor, but the maximum hit a monster can inflict upon you will not change. Instead, it'll hit you for high hits less frequently.
Danth