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Ok here it is in a nut shell correct me please but this is what I was told by a friend tonight over our local forums

25%lords max
25%hero max
50%core minimum and must have at least three units
50%max special
25% max rare

Can somebody please put this dog to rest before I lose my ever luvin mind, not that I already have or anything!! WTF?!?!?

25% core minimum. To my understanding as well, the 3 units is not necessarily core: You require just three units in general, excluding characters.

Everything else looks right.

Minsc is right on with this. Everything other than that is right.

Also, for special you can only have 3 duplicate units, and for rare, only 2 duplicate units. So I can only take 2 eagles, for example. I can, however, take 2 eagles, 2 treemen, and 3 units of treekin (a special choice) if I like. There are no restrictions other than these, and none for the number of heroes/lords other than what fits in the percentages.

These restrictions also go up for games at 3000 points or above.