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I read in the codex ork shootas are 18' Assault 2 weapons, but then I read in an update codex 4.01 that they were rapid fire? Which is the correct current rule on the weapon?

Should be 18" assault 2. Never seen or heard of this update codex your talking about. Could you link it?

Rulebook and codex say 18" assault 2. The GW Errata and FAQ do not change this. I'd say this update codex 4.01 you used is something unofficial.

My guess is that this was a 4th ed Fan update to the Ork codex, that is now invalid due to the offical 4th ed codex.

That would be a MAJOR downgrade for Shootas.

I assume you've found either:

a) A Fandex
b) A Codex put together by a troll to mess with people doing illegal downloads

Either way, disregard everything you read in that "update"

Unless it was produced by GW later than January 2008 (i.e. after the most recent Codex: Orks), it is not valid. If it was, you should still seriously question its authenticity, given that the shoota is widely understood to be assault 2.