Wereboar and ZarahNeander, yes, actually resistance increases (not shown) past 100% up as high as 250%. However, above 250% there is a known Wizardry8 bug that it "wraps" back around to zero.
This came up when a player, posting on the vn board, ran an all magic party up to the top in Intelligence and Piety, then trained Iron Will to very high levels (using the gas chamber at LMB, I believe). She managed to get two Light Shields, with the intent of using them on her two Melee-strong Priests, but they caused her resistances to wrap back around to low levels instead, so she couldn't use them.
Regarding resistances, yeah up to about 125%, unless they also cast a Shield, Powercast can be at least pretty effective (resistance of 90% is like they're naked... except bosses like SE). I find that resistances of 150% and higher are like a wall, however. I have tried my most powerful spells against resistance like that and usually get exactly zero damage. There's some randomness to it and sometimes some damage slips through but not much.
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