Thank you for the feedback, Joey!! That's tremendous.
I have yet to playtest combat - I agree there's some tweaking to be done there. Even if it stays the same, I may need to rewrite that section for clarity. Here's how I imagine it working currently:
GM: The bandit advances towards you, drawing a rusty blade. What do you do?
PC: I grab my axe, do I have time to attack first?
GM: Yeah, they're getting close tho!
PC: Ok, I pull out my axe and swing at him! [Rolls POWER (12), gets a result of 6] Success!
GM: Nice, roll your Axe die for damage (Ud6). The bandit is wearing a padded vest (Ud2).
[PC rolls 1d6 and gets a 5. GM rolls 1d2 and gets a 2.]
GM: OK that's 3 damage to the bandit, after armor. [rolls bandit's health die Ud2 and gets a 1. This expends the bandit's health die (as well as bringing health below 0)]. Ooh! Your axe bites deep and he collapses, dead.
And here it is if PC failed their Power test.
PC: Dang, I got a 19.
GM: Your axe caught on your belt loop and the bandit was able to close the gap before you wrench it free. It's too late, he stabs you. Roll your Armor die.
PC: [wearing a maille shirt, rolls 1d6 and gets a 1.] Ugh.
GM: That's wear on your armor, mark it down to a Ud4. [Rolls 1d4 for Bandit's blade, gets a 1]. But it's enough to stop the blade! Looks like he tore a hole in your maille, but you're only bruised, not cut.
PC: The best defense...
GM: He yanks the blade free and, though likely dulled, tries to stab you with it again, what do you do!?