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Say you have an 8 man squad of Cavalry. Then you join 2 characters to that squad. Later The squad gets pwnd and is reduced to 1 character & 1 knight. Can the squad make a rally check now? It has 2 models in it, it started at 8? Or do you ignore the character being in the squad?

I say broke forever!

Ok, I really haven't a clue.

10 (8 +2 characters) reduced to 2 (1 + 1 character)

I'm not 100% certain. But I think the character flees with the squad, and continues to flee per the below the rally amount. He was with the unit when combat began, I don't think he leaves it because there is a model he technically formed a unit with.

I would have to dig to find where it’s written, but I’m pretty sure that attached characters do NOT count towards the unit’s starting strength, but DO count for its current numbers (though for VPs they’re always separate). If I am remembering right, that would mean that in your example the unit’s starting strength was 8 members, and it would be able to rally, as it was (at the start of the current turn) currently comprised of two members, exactly 25% of its starting strength.

The way I remember it works as Mannahnin has stated: they dont count for starting strength but do count for current strength.

That is how I understand it to be as well. The opponent still gets half points for the unit, but they do get a chance to rally.

Just checked - page 19 confirms that the current Unit size includes any characters when determining the 25%, however the unit size used to calculate that is the original unit size - this is the size at deployment, which is before any characters can join the unit.

Long story short all our memories were correct