Re: M855A1 ammo- AP?
My impression is that the treatment of AP is what it is because they didn't want to use a fractional penetration factor. I can't see another reason for the base damage reduction, anyway...
So I'd suggest handling it as no reduction in damage but a (1.4) or (1.5) pen factor if you're willing to.
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I don't know any 3e, so there is no chance that I am talking about 3e rules by accident.
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