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I'm guessing you stop at the impassable terrain? (In my case a building) and if you only moved a few inches, then a unit of swordsman if they physically touch the cav, they toast them?

A unit which flees into Impassible terrain is immediately destroyed the moment in touches said terrain.

All fleeing units treat buildings as Impassible terrain.

Both of these are clearly stated in the rulebook.

The models all go inside for a spot of tea, and then get murdered by the sexy dark elf assasins that work there as serving girls. I think that's in the rules as well!

spasheridan wrote:The models all go inside for a spot of tea, and then get murdered by the sexy dark elf assasins that work there as serving girls. I think that's in the rules as well!

If it's not, it should be.

The unit is destroyed. I think of it this way- the fleeing unit scatters beyond any hope of reforming. Some swim across the river, some drown, some go left, some go right, etc.

I don't have the BRB on me... do pursuers stop at the terrain if they would pursue into it?

Pursuers stop at the impassable terrain, which includes buildings when you are pursuing.

They will pursue into any other type of terrain however.