Indeed it does. That's why you're doing no damage, and you would have done very little damage in unmodded FO2 as well, in fact no damage at all to Leather Armor. I'd suggest using FMJ in the Magnum or getting a Hunting Rifle. Hope that helps, but Finesse is what I would call a bad trait. Everyone! I have released a side project called Fallout 2: Worldmap with Buildings. It's exactly what it sounds like. There's a thread for it right here in the modding forum, go check it out and tell me what you think.