Says the damage does not modify... does that mean the damage is still penetrating or am I missing the point here?

The damage is penetrating. What the does not modify means is that if you roll a critical hit you would not get the +1 from that.

It is not penetrating. Penetrating is a game term. The effect is similar to penetrating damage with some additional elements like the one hpred mentioned, but it does not deal penetrating damage. (This is important if a character ignored penetrating damage.)

Your right Questions, I just double-checked and completely spaced that it does not have penetrating damage in the text.

so what exactly does the Meteorite do again?
it used to act like a pseudo BCF didn't it?
i don't own this puppy so i have no clue what it does.
thanks in advance for any help!

How about I just quote the text.

From the Player's Guide:

thanks again Questions! i actually had a guy tell me last week that the rock dealt penetrating damage, but the text you posted was more so how i remembered it being. and nowhere does it say 'penetrating'.

why that doity rat!

Keep in mind that
means that it won't be modified by -2 for Invulnerability, etc., so it acts similar to Penetrating Damage. Now, try tossing Nanoarmor on the target of the Attack and see where that gets you...

that being said, doesn't Invul, toughness, imperv reduce damage? and not modify damage? i'm going strictly by game terminology, or what i perceive to be game terminology. in other words, reduce and modify are not the same terms and thus the damage isn't being 'modified' but rather 'reduced'.
and if this is true, then the meteorite doesn't deal penetrating damage, as penetrating damage is a game term too.
i am merely speculating and sincerely asking, not flaming or trying to start arguments.
don't mean to sound thick headed, but can we get official on this biznatch? am i just grasping at straws, or is my interpretation legit?

The Meteorite is not penetrating damage, but in regards to damage reducers....

From the Player's Guide:
Arguments have been raised especially as concerns Impervious reducing damage to 0, but GD has indicated that it is all modifiers and that the damage cannot be reduced.

ahhhh ok i got it....i think
so then, the damage that the rock provides can't be reduced, but the damage on the attackers dial can be? is this correct?
so if Destiny picked up the gem of cyttorak and gained SS, she could grab the meteor, roll a 6 for example (-2= 4 total damage as she has a 0 base damage) and deal 4 straight to warhulk?! that's insane!

The Meteorite specifically says that it adds to the attacker's damage value so that isn't a problem. (Although it wouldn't be anyway since that is damage value and the Meteorite curbs damage dealt.) It will also be subject to the Rule of 3. (So Destiny would have a 3 damage value for the attack.)

oops i forgot about the Ro3.

But wouldn't 5-6 for impervious REPLACE the damage, not modify. I've never got that ruling

It REDUCES it to 0. As stated before, reducing is considered modifying it. (It doesn't fall in line with the standard definition of +/- by a specific amount, but it is a modification.)