Lot of talk here in the forum on how you can use an combination of alchemy, enchanting and smiting to make overpowered gear.
However will enchanting, alchemy and smiting give better result with skill 130 than skill 100 or is skill caped at 100 like most in Oblivion?

Yes, it will. My smithing is at 100, but certain items buff that number even higher, allowing me to create even better armour and weapons.

In fact i'm pretty sure you can use console commands to buff it up to something silly like 600, and have ridiculously powerful armour and weapons.

Max is 100 for a skill.

100 is the skill cap not 130
Where you been?

You can get over 100 by wearing or using items that buff your skills
don't be a hostile ass

read the same
bout a guy getting 100 in smiting skill and then potions and whatever to get better results with his smithing

As far as I can tell, yes and no. It seems 1h/2h/bow skills all increase in damage with higher skill. Magic skills do not. If someone can try equipping +skill items rather than +% damage items to 1handers, for example, and report back if it's comparable, or dumb. It'd only take one piece swapped out, enchanted to the maximum value, to see if it is worth it, I suppose.

I wish there were +magic damage enchants in this game >.<

Did you even read the original post? You can increase your skill with potions and enchantments. So yes you can reach 130 in a given skill

With my smithing skill at 100, when I improve weapons, it of course raises the damage and value of whatever I improve. Doing some testing, I found that not only do smithing enchantments raise the damage and value even further, but they also stack with one another. (Tested this using as many max smithing enchants as possible across multiple pieces of armor.)

If you max out your enchantments and use smithing enchantments to improve 100 smithing, you can create laughably overpowered armor.

Alchemy is alchemy. You can create potions and poisons that would in theory improve them even more as you use them, but I don't use potions myself. I'm sure someone else can confirm what they do best.

This is how I understood it, you need an fortify enchanting effects, with it you can boost your enchanting skill, so you can make even more powerful enchants.
Now with an fortify smiting effect you can make smiting gear for an serious boost.

However if you add alchemy into this it start getting weird. make some alchemy gear with fortify alchemy enchant effect,
now make an fortify alchemy potion and drink it, now create some fortify enchanting potions and make a new and better fortify enchanting gear, with this create new alchemy gear, over to the alchemy table and make more powerful potions.

I see no reason to stop here as I get an strong Morrowind feeling out of this even if the cycle is more complicated and involves grand souls.

That was the impression I got, after posting and looking through the console. You can buff enchantment with alchemy and vice-versa. If you can exceed 100 like you can with smithing, you can theoretically have an upper limit of 255 skill. Well, maybe even higher if they coded it differently than I'd expect.

I'd have to do some more testing to find out if there're any true caps or not, but it looks like it's an exploit.

Here a link to a guys post where he does just what you guys are talking about.

2469 armour anyone

http://www.gamesas.com/index.php?/topic/1266212-2469-armor-3199-damage-using-smithing-alchemy-enchanting-only-31-perks/

Yes this exploit has been there since Morrowind. In Morrowind, it was stacking the intellect stat with potions, to create even more powerful potions, which leads to more powerful potions, etc. Maybe it was another stat but that's the idea.

I believe this exploit is one reason why warriors have it easier than mages.

in that guys post he stats you can only do the cycle 3 times due to "diminishing returns" ie after the 3rd time round you probably only get 1% more out of it. possibly you get 0% out of it even i havn't done it myself but i did look at the thread.