The damage formula on this server is entirely, and utterly wrong. You shouldn't hit for 1 very often, but you should also likely hit for a lot more than you do on this server, plus there's the 'sweet spot' number which comes into play as well, which is that number you hit for most often based on your atk vs the mobs ac.
Tons and tons wrong with the formula here, but they're doing a ton of work on it for the beta server and last I read it was getting pretty close to set. They still don't have the level 20 and 30 damage cap removals in here. It's all skill based, which actually isn't the way it worked on Live.
Basically said all that to say, they're working on it.
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