The time evolution of a damped two-level atom coupled to a damped field mode at resonance is calculated analytically as well as numerically in the basis of dressed states. We study the dynamics of the density matrix and of observables, e.g. the number of field quanta. For the initial states we consider the field to be in a Fock or Glauber state and the atom in the ground or excited state. We show the significant influence of the damping on the well-known phenomena of this model, e.g. collapse and revival.