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I am a high level paladin. I am in the war zone. I broke into one of the wizards houses, and finally killed the Balor Lord there..but it was one tough tiff. Most of the time I kept getting the message that my sword of chaos was ineffective.
What are some of the better ways of killing the Balor Lords?

you broke in to wizard's house and you're a lawful good paladin?

sorry about that but where is this balor lord?

The wizards need to be killed in order to stop the war golems, which are indestructible. You have to break in because the doors to their hideouts are locked.
This is all in the war zone, which is part of chapter 4.
In each hideout is the wizard, and a Balor Lord protecting him. There are 3 such wizards, all have to be killed to stop the golems.

What is the enchantment bonus on your sword of caos.

If you get the message that your weapon is ineffective it is most likely because the creature has damage reduction that removes a large portion of damage.

For instance if you experience damage reduction (what you can sometimes get as "soak damage" on items yourself) with a +1 sword, then using a +2 might bypass the damage reduction.

For instance - lets say the monster have +1/20 damage reduction. That means it will absorb 20 points of damage from +1 weapons or lower, then using a +2 sword (or higher) will eleminate that damage reduction.
You can also bypass the damage reduction by using a weapon with elemental extra damage (fire, acid, cold etc), but you will still get your physical damage absorbed.

Hope this helps a bit.

Clarification, please - - -

AFAIK DR stats refer to the number of points absorbed (or ignored) and the enhancement which is required to bypass that reference.

IOW

• DR20/silver means that silver or magical weaponry is required to bypass that 20pt DR
• DR20/+1 raises the requirement to magical weapons only
• DR20/+2 means that you have to have a +2 weapon to bypass that DR.

BTW - there are some stats which refer to the ability to ignore certain types of energy attacks. I believe that the Balor would be either resistant or totally immune to electrical and fire based attacks. They should be vulnerable to holy, lawful, & cold attacks while acid should do normal damage.

CAVEAT -
All this information is coming from the D&D rules and not from Bioware's (sometimes mis-) implementation of those rules. If my memory is incorrect for these implementations, please let me know.

This is explained in the manual (my version) p. 104+105.

And I did write it wrong in my former post.

20/+1 means that all weapons less then +1 will have 20 points removed due to damage reduction. (I wrote wrongly that it ment +1 and lower, it only means lower)

Are the resistances incorporated into the various creatures as well (esp. the Balor who should be near immune to electrical & fire)?

I know that the immunities were incorporated into rings so the same programming should be available for the individual monsters.