Changing and Replacing Combat Functions via Special Effects

Hi hackers.  This thread is going to be for mapping out the combat function and explaining how to change and replace combat formulas via special effects, making abilities and items much more dynamic with the game.

So far I've made a rocking formula successfully but I do have 3 questions for anyone who might be familiar with storing values, special effects, and the combat function.  I have searched about these, btw.

Q1: Storing Values.

I'm working on some new formulas and when I look at the original game formulas, it seems to store values in a low range of addresses.  I'm looking to use 2-3 byte calculations for changing and replacing damage functions.  Is there any range in particular I would need to store this extra data?  There are at least two spots where damage is stored, for example -- $F0 and $11B0.  I'm guessing the low address values are due to development planning rather than system mechanics---anyone know about that?

Q2: Special Effects

Special effects are called in a lot of different places--it looks like there's two tables and only one of them works for my spell sfx.  Has anyone found any surprising problems with editing special effects in general?  They're called in reflect and launcher too, IIRC.

Q3: Combat Functions

It seems like the combat --> damage --> result function never ends.  Any caveats and wisdom would be much appreciated before I wreck my hack for good.  I'm surprised at how little it seems the modify damage routine is referenced, but I'm worried there are so many references upstream I'm not seeing, that changing damage is too risky when added via special effects into $11B0 and $F0.

Thanks all.  Whether we have any wisdom on this or not, I'll be sure to make it enlightening for us.
RS