Here is what librarian says about absorption
http://www.mannm.org/d2library/faqtoids/eledam_eng.html#absQuote
Percentage absorbtion is hardcoded limited to 40%, no matter if you gain higher nominals. No cap is known to straight numbers, so this is limited only by equipment slots.
First check is resistance, then percentage absorbtion, then straight absorption.
Absorbtion will reduce the given amount of corresponding damage - the unit recieves no damage at this point. Then the absorbed damage value becomes a bonus to unit's life, but it won't exceed its maximum life. Then the now enhanced life value suffers the amount of elemental damage which was not absorbed. If unit was at full health at first point it doesn't gain life via absorption, absorption works similar to resistance then.
That is,
1. Calculate damage reduction due to absorption after resistances
(reduction through absorption and reduction through resistances are multiplicative)
2. Apply absorbed damage value as a healing bonus if unit HP < max HP
(up to the point at which HP = max HP, excess healing discarded, if any)
3. From resulting HP subtract amount of elemental damage not absorbed
Thus, at ~ max HP: single reduction, otherwise double reduction (healing + reduction).
This post was edited by Faelwen on Jul 8 2009 09:42am