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Are they still a playable army?  If so where can the rules be found?

The rules were in the Chapter Approved Cursed Foundings article in CA04.

They were only ever 'opponent's permission' rules, so are still every bit as playable as they ever were.

Man trooper you down on your lost and the damned already?

hahaha, never. I loves me mutants. A friend is getting into the hobby and wanted to know about them.

I mean as was said it was in a chapter approved listing way back in the day, and collecting the shoulderpads/weapons for the army would be a *female dog*, but I could forsee one just being absolutely killer in terms of not only modeling but gameplay as well

You don't need the shoulder pads and weapons. Or the Legion of the Damned models, for that matter. They were actually just a sculpting exercise for trainee sculptors way back in 2nd edition, a practice for them to add detail to existing models, and frankly weren't all that good.

Painting on flames looks much better (in my opinion) than the big, chunky sculpted ones on the GW models.

the best i could do is find some stuff on the uk site

http://uk.games-workshop.com/spacemarines/legionofthedamned/1/

I agree insaniak. I came across some a year or so ago and picked them up. Not too pretty, some people like em though.

 

The Legion of the Damned rules were in the Cursed Founding Chapter Approved rules, and the UK site says:

 

<h4 class="nospace3">CURSED FOUNDING CHAPTER TRAITS</h4>

The Games Development team are looking into updating the Cursed Founding Chapters in line with the rules in the latest Space Marine Codex. When these rules become available we will present them along with this article. In the meantime the background information here can be used to help you choose your own set of Traits and equipment to best represent the Cursed Founding Chapters on the tabletop.

 

Here:

uk.games-workshop.com/spacemarines/cursed/1/