The Horror spell (overpowered in my opinion) puts two effects on the targets: Panic (24) and Morale Break (106) - setting this one to 20. The results are the same - an instant yellow circle and a running-around, except that imposed separately Morale Break gives a bottom-window message about a morale failure and the creature, if it has a verbal constant for fear, says that line. They work the same way here because the morale break stat is set impossibly high. At lower values it would just make creatures more susceptible to bolting when the engine makes its hidden morale checks. Xan, Khalid probably always have higher morale break values than average to represent their cowardice, or maybe their morale total is lower - but that's not a stat that can be changed in-game except to reset it.
This said, using both Panic and Morale Break in the same spell seems redundant. All of the protection rings I've looked at that protect from Panic also give immunity to the other effect. And Morale Break gives an informative message together with the fear sound bite, which is better for the atmosphere. I don't know if MB imposed this way always leads to running or sometimes the creature flies berserk? Maybe this possibility is the reason Panic is in there as well. But I wonder if there is some interplay between Panic and MB to latch on to and make Horror or other spells more tactically interesting and subtle. For example, we could get rid of Panic in Horror and instead of setting MB to a flat 20 make it inflate the stat by 150% for a round, in the next round by 130% and finally by 110%. For some creatures this would mean running about in fear all three rounds, braver ones could recover in shorter time.
