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I've heard conflicting statements regarding the use of multiple heroes in a unit. So, what's the answer? are you allowed more than one per unit or is it only 1:1?

You can as far as I know stack as many characters in a unit as you want. Just watch that it doesn't run away from something scary (or crumble if itself is scary)

PapaSmurf

Characters cannot form a unit with other characters- they are just a bunch of individual models bunched up together. (That may be where some of the confusion comes from, because people have tried that in the past.)

There is no rule that limits the number of characters that can join a unit. You can have your general, a BSB, and three wizards together in the front rank of a unit of spearmen, and that's perfectly fine. (Of course, if you do that, your front rank will have to be 8 models wide, to get the spearman command models in there.) Once all the spearmen are dead, though, those 5 characters don't constitute a unit. Even if they are in base-to-base.