I do know shields reduce the damage taken BEFORE the damage affects the armor. Armor has a cap of around 80% damage reduction. However, how much damage can shields reduce? (other than the perk that lets you block more efficiently, you can enchant items so you block even more).

Also, does anyone know of how the bleeding effect for the axe work? The the bleed damage depend on the base weapon damage without any perks or enchants or smithing? I've been looking into this, and all over the web there are contradicting claims.

Pretty sure it is 85%.

80% iirc.

http://www.uesp.net/wiki/Skyrim:Block says: maximum blocking effectiveness caps at 85%.