I'm trying to get players in my area into Dust Warfare, which is an uphill battle at times as many people are very entrenched in their favourite rule sets (Warmachine, Infinity, 40k). 

The game I played yesterday against a new player, him with Allies and me with Axis, brought up a point that I'm fairly certain I played right, but turned my opponent off the game. This was:

Are there any restrictions on shooting at units in 'close combat'?

His unit of Hammers/Rhino got into combat with my Heavy Laser Grenadiers, I survived, and in return fired my Heavy Flak Grenadiers and a nearby flamethrower into them. He said (and I agreed) that it seemed a bit odd that I could use a flamethrower on his troops, which were standing behind my own troops, and not hit my own guys. I didn't know how to respond to this…

A few more little questions arose:

1) Cover and Armour reduces Damage, not Hits, correct? (ie, 3 1/3 hits causes 9 damage, which he then reduces using cover and saves)

2) Can you use a Take Action - Attack Order to split fire, and thus put suppression on multiple units without provoking reactions?

3) Heavy Flak grenadiers seem to provide a nearly identical role to Heavy Recon Grenadiers, but better and at a lower cost. (less dice against I2 compensated for by ability to Burst and dice against A3, in the rare case that you actually need more anti-I2 firepower. Similarly Battle/Recon grenadiers seem to trump Laser Grenadiers. Not really rules question, but do other people find this?