Sorry about that, I was mistaken. I setup a trigger to test what damage was actually being dealt. It appears now that it is all working correctly, including the attribute bonus.
I think this solution is far cleaner then using a trigger solution and its quite easy to setup in the damage response field. Since armor and damage values are constantly changing, any time the unit takes the minimum damage from the Default game value due to high armor, the damage response will trigger and it will ignore the damage!
Works like a charm, except won't technically work with armor piercing effects.
Thanks for the help everyone. Sometimes you just need a few ideas and postings to get the brain going.