I have re-tooled my armor rules yet again, and will go with the base AC of 10 with armor adding to the base (so a Do-Maru with AC +2 makes AC 12). To do this I had to re-vamp my attack rolls making it a d20 roll plus FC = the AC you hit. I am not sure I am happy with this yet, but it is growing on me (I need to test my rules soon).
I have written up my three primary classes (Bushi, Sohei, and Shugenja) and even created a new Yakuza class (a thief like character - based off of Sham's Scout class for his Solstice house rules).
I have even adopted a name for my rules, currently they are called Ruins & Ronin. It works for now.