<snipped excellent comments on how to interpret defeat levels and spirit attacks>
AFAIK in HW otherworld creatures need some sort of 'vessel' in the mundane world. For a ghost this is the area or object that they haunt. IIRC a ghosts objective is to possess those entering its area/handling its item, and use that possessed body to attack/communicate/obtain revenge or whatever.
A first step in your story is to figure out what the ghost wants and how it will use the body it possesses.
If it only intends to communicate then a marginal or minor victory might be enough. If it wants to attack (and it is a mad heade ghost so that is probably a yes) I would suggest that it needs a major victory (perhaps the ghost is only able to use its abilities at 50% here due to the rightful soul struggling for possession of the body) or complete defeat (no penalties the body is yours to control. Hulk smash!).
Resisting and Defeating the ghost are I think dependant different ablilities.
Frx, against a Mad Head Ghost you need to find the head and crush it will reciting LM's ritual. So I would go for Initiate/Devotee of LM ("I rip this tool"); Heortling Myths (-3) ("Now what was that poem in the story..."; Search(-5) (where's the head); Close Combat (-10) (smash everything!) for hero attacks.
Defence is less obvious but I would allow them to resist with the highest of 14 (its magic); Highest affinity (my soul is powerful alien creature); Initiate/Devotee of LM (Servant of my enemy I resist you); Worship Storm Pantheon (Orlanth! Help Me!).
Ian
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