Attack chance is decided by skill with type of weapon.
The weapon chance, say 65%, then goes up against the enemy's dodge, out of 100. The dodge chance is affected by dodge skill and armor.
Damage is based on dice rolls. A weapon with 1D6 rolls one six sided dice. 2D6 would roll two six sided die.
Ya know, I would ask you to add a "create your own race" feature where you can pick your troops besides ladderman and the starting 4, but you'd probably reserve it for Armorgames. =(