First of all let me introduce you to a growing collection of language and dictionary links:
A2K Portal :: Language resources
I just added a dictionary of hacking terms
where you could have gotten the definitions.
means software that has copyright measures disabled and is distributed illegally. It's "cracked" software, and also refers to any "pirated" goods.
in this context means patches to software that circumvent (bypass) the copyright measures.
An example of both warez and a crack would be if someone wrote software code to enable you to get a trial version of some software and apply a patch (the "crack") and thereby use the full version without paying.
They are both illegal and any responsible website forbids them. Due to the Digital Millenium copyright Act the law is very strict about warez.
The second part of your question seems to actually be a confusion on several points.
"to exhibit" does mean to show.
"He exhibited a lack of skill" means he showed that he has no skill.
"little to no" indicates a range.
e.g. "He has little to no money". In other words, if he has money he has little of it.