I always thought that Warhead Strength would have direct effect against armor, number by number. IE: A 10 strength warhead could pierce 3 armor layers and cause 7 internal damage.
But it seems I am wrong, especially after seeing a Strength 20 Warhead slam into what appeared to be a Alien ship with only strength 2 armor (At least)
I wish I could see their armor after that to learn what happens with it, but since I can't (I don't want to go in SM mode while doing a campaign, or I'll fall into the temptation just to add one little thing (And than another, and another, etc.)
So, Steve, or anyone else that knows exactly what happens with the Warhead Strength when it hits an enemy, please let me know so I can design my missiles better!
PS: Thanks Steve for being so active and helping people practically on a daily basis. I must admit, you are /the/ awesomest game developer ever.