Dwarves have Spell Resistance 10.  Dwarves may NEVER voluntarily lower their spell resistance.  Successful spells cast on a Dwarf are reduced to ½ of their original power.  Indirect magic still affects Dwarves normally.  Many Dwarves are uncomfortable around magic users or visible signs of magic use.  Ironically, Dwarves are known to covet magic weapons and armor.  (This racial trait is subject to adjustment if it proves to be broken or unbalanced in any way.)

Dwarves do not need to be trained in Knowledge (Engineering) to use it.