In its original and unaltered form, Greater Malison makes the target immune to further castings of Greater Malison, which means the spell is not stackable. However, the spell does not disable the display string "saving throws lowered", so you see that text even though it has no effect. Doom is indeed stackable; Greater Malison followed by 2 Dooms = -8 to saving throws and -4 to Thac0.
Yes, a yellow circle means the creature has failed a morale check.
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