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I was just about to start a game against a friend. He plays Space Marines and I play Chaos Marines. We finished setting-up terrain and rolling for mission/deployment. We got a dawn of war deployment and my friend was first. He wanted to put his landraider carrying his squad of terminators and Calgar as his HQ choice. I argued that he couldn't do that since his Termies are Elites and not troops. He kept saying that Calgar is one of his HQ's and he is part of that unit, so therefore, they are part of the HQ choice. He wanted me to find somewhere in the codex that says that he can't, but no matter what I showed, the wording wasn't good enough for him. Is he right?

DoW deploy clearly stats that up to 1 HQ and 2 Troops (and their Transport if they took one). Since the Terms fill an elite spot and not his HQ slot then he could not place them. 2ndly as far as i know Calgar could not take a LR as a ded trans so he could not feild that either. In anycase you were right.

The Landraider and Terminators are still an Elite Choice. As long as the Lanraider was bought as a Dedicated Transport for the Termies that is.

Calgar is seperate HQ choice.

As the HQ Choice is not required to deploy with Dawn of War right away, if he wanted them to be deployed together he would have to have Calgar with the Terminators in reserve.

and it's a maximum of 2 troops units deployed (transports for them count as a separate unit for deployment - so you could have ONE tac squad and its rhino).

Since the OPs mate's terminators weren't a terminator command squad (on account of them not existing anymore), neither they NOR their Land Raider could be deployed. Marnie-boy can be, but his buddies cannot.