A few notes and clarifications on fire combat:
* You are picking from the two closest VISIBLE targets. A closer unit that is not visible at all does not count.
Indirect fire units fire at the two closest targets in general, when firing indirectly.
If a mortar crew wishes to fire small arms, they'd select targets as per the normal rule above.
*In some cases,the members of a squad may be in positions where they cannot see the same targets at all.
An example might be soldiers deployed at the windows of a building which is surrounded.
In this case, it's usually best to agree to let each individual figure select their own targets. Otherwise you may get some exceedingly silly situations.
*There is no bypass rule for firing at or from vehicles at the moment.
If the two closest targets to your anti-tank unit is infantry, then you can't fire past them to hit the tank coming up behind them.
This is intentional to encourage using infantry screens, combined arms style, though if it produces too silly results feel free to adjust the rule, especially for tank-heavy battles.
We'll revisit this point later, as people have time to wrestle with it.
*Typically, you want to roll your shots together, but if you have a complex situation (firers at different ranges, targets in different degrees of cover etc.), resolve them one at a time.
This typically makes it easier to figure out.
You can resolve the shots in whatever order you like, but if the group dislikes excessively fiddly "micro-tactics", just go from closest to most distant shooter.
*When selecting targets in a Squad, you usually fire at the closest enemy, but you may select a more distance squaddie if they are easier to hit.
Essentially, fire at the closest figure or the closest figure that is easier to hit than them.
The closest squaddie is behind a rock (-2 to hit), the rest of the squad is in the open (no penalty).
I can shoot at the guy behind the rock or the closest of the remainder.
The closest squaddie is behind a rock (-2), the second closest is behind a bush (-1), the rest are in the open (-0).
I can fire at the guy behind the rock (since he's closest) or the guy in the bushes (since it's the closest figure that's easier to hit).
I CANNOT fire at the more distant guys in the open since they are not "the closest figure that is easier to hit".
*Regardless of how you resolve shots, each figure should be resolved "correctly" with the modifiers applicable to their situation.
Don't abstract a mixture of short / long range shots into one, don't try to average out the enemy cover situation etc.
Well, you can, it's your game now, but I suggest not doing so :-)