Search the forum for strategies for defeating Josephine. I don't think being attacked raises your resistances.
Left click on an equipped item with a charm quality. A charm pane will open up with one open slot (since you have level 1 of Enchant Weapon) and the rest of the charm quality number of slots (if any) closed. Drag and drop a charm into the pane.
If you want to cheat, you can open multiple charm panes, and drop a charm into each (if the list of charms in the description of the equipment goes off-screen, it can crash the game, though). I'd advise against this since it could make the game too easy, but the end of the game is already too easy (with the possible exception of one fight). <img src="/ubbthreads/images/graemlins/winkwink.gif" alt="" />