Hi, hi. My friend is a complete addict and knows mostly everything about this game, a little too much if you ask me. But he is always crying about this damage cap thing. He states that when fighting a Dreg that is level 5 and you are say a level 32, you would do the same damage to that Dreg as a level 20-31 would do. So try testing this on enemies in your level range. Hope my friend is right and not making me seem like a complete idiot. Good Luck. :)