I figured it out. I tested it with the default party because Thrasher had the Gamble skill (I don't know if this is necessary or not though...). If anyone wants to know how to really break Wasteland 1:
1) Go to Quartz and sell off your stuff because you will need money to Gamble. Keep the weapons though (at least Thrasher's).
2) Go to Needles. Head to the Acapulco Casino in downtown Needles (password "Acapulco").
3)Disband your gambler ( again I don't know if they need the gamble skill or not - since I tested with the default party I used Thrasher who had Gamble.
4) Gamble at one of the two chairs until you win. DON"T TAKE THE LOOT!!!
5) Go to the other chair and gamble until you win. TAKE THE LOOT!!!
6) Open your inventory. If you want to wear the best/overpowered armor in the game: drop your equipped weapon.
7) Go back to the first loot bag and open it. It should look empty, however if you press the down arrow (or k or I think a couple of others work too) you will see a list of items (the first page is likely Rockets. Scroll through the list with the down arrow + enter as needed. The best items are probably: Proton Axes (best brawling weapons - brawling doubles your xp so you can take advantage of this), Red Ryder Guns (best guns, uses Rifle skill + 7.62 mm bullets - can kill just about anything in one hit, and NAME (this is by far the best armor - it will show 27 AC when equipped (power armor the next best is like 14), but it's actually something like 100 (it just can't display that). The Name will show 0 as the quantity, but it's actually has 255. Take as many as you want.
8) Open your inventory and select Name if you took it. If done right (step 6 - dropping the equipped weapon seems to be key) you will be asked if you want to Unjam "Name" - say "NO"!. Next, select Name again (you shouldn't be asked to unjam it) and equip it. Your character now should show 27 AC and be virtually indestructible.
