Mist Form means no damage from physical attacks. However, it only affects damage, not special abilities. Crippling Shot will cripple you, but you receive 0 damage. You are still subject to being hit with spells, so Meteor Storm, Life Siphon, Vampiric Touch (yes, touch skills can still hit you too). Only damage from non-spells/touch skills are you immune to.
Mist Form is fine as long as you know, that there are no enchantment removals used by your enemy, you remember that you can be hit by spells and touch skills, and effects from attacks can still hurt you. Crippling Shot, blocked Glass Arrow, etc. can still affect you.
Hope this helps.
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