1. When making a declaration to Full Retreat or make a Fighting Withdrawal, to players have to be specific about which one? Or can they broadly declare they are engaging in Defensive Movement for the round and then decide specifically if they are making a full retreat or fighting withdrawal on their initiative number? The text to me suggests the former, because otherwise how would you know to apply the +2 bonus to-hit against retreating characters?
2. Full retreats are stated to occur when a character moves greater than 1/2 their combat movement. Does this mean a character that is fully retreating can also run (moving at 3x their combat move?). The layout implies that Running and Defensive Movement are exclusive options - i.e. you can't do both together, but it doesn't seem to be explicitly denied. I'm fairly certain you cannot, but a few players read the pertinent section and came to different conclusions.
While on this topic I'd like a clarification. Retreating does not entitle the opponent to an immediate attack upon the retreating party, correct? The opponent still needs to follow up on the retreating party to make his attack? Or have I been going easy on my players?
The easiest way to explain it is that attacks of opportunity are replaced by the dynamic initiative system. Since you can't predict when you'll get to go, you're always uncertain of your ability to escape the next combat round without being hit.