I was really shocked when I mistakenly level up Intelligence above 100 and saw it stayed there! Multiplied my spellpoints by 3 and all.

The file I use is from:
http://theelderscrolls.wiwiland.net/?title=Daggerfall_:_DaggerfallSetup_EN

This was not supposed to happen was it? An I going to face trouble (crashes / bugs) because of this?

Many thanx

It has a patch that allows your skills and attributes to naturally rise up to 200.

Thx - had no idea... can this somehow be disabled? I know I could simply ignore this and stick to 100 by self-rule, but...?

I made the DagSkills patch which was used by AncestralGhost in the Daggerfall Setup you are using. I can assure you it is completely safe as many people used it for almost 10 years and I never get any complaint.

My point was, I generally like to have a clear notion of limit and balance, so I would not go for > 100 Att / skills. I mean, I do not know how this affects character's proficiency overall, so I assume level up does NOT stop now once a skill reach 100 (as they go up to 127). Additionally, how'd Strength of 200 do, damage-wise? I never had characters with high Str, was curious how the new limits apply to calculations that are already fuzzy in the official game.

With a standard Daggerfall skills can only be raised up to 100, not 127. With a fall.exe patched with DagSkills they can go up to 200.

The only problem I encountered with the new limits was with Mercantile as far as I can remember. Game prices calculation supposes a max Mercantile skill of 100, and at a certain level above 100, you get negative prices. The good thing there is that it's really difficult to reach even 100 in Mercantile so that's not a very big problem.

For strength, the damage computation formula correctly handles values above 100.