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What the hell is the difference between the two rules. Especially since several characters in the Necron Codex have both rules.

Everything has some perks that Reanimation Protocols doesn't have.

The biggest difference by far is that Everliving characters can get back up even if their unit was wiped out or fell back. A unit with RP would lose the lot. BUT it's also important to note that these characters don't count for the purposes of RP, so if they're the only one left standing the unit is still lost.

So everliving is something that really comes into play with a royal court or if a lord is caught alone and killed, where RP would be used if the lord got smoked in a warrior squad but some wariors survived?

No, they always use the everliving rules. RP is on the characters because it's a requirement for ever living.

It's quite simple, everliving allows you to bypass RP restrictions and it has slightly different placement rules, otherwise they're essentially one in the same. Keep in mind, ever living is an additional rule but you're still making an RP roll with the unit (otherwise res orbs wouldn't work for characters).

Further qualified by the FAQ that it is an RP roll you're making -

"Page 82 – Necron Wargear, Resurrection Orb.
Add the following sentence at the end of the second
paragraph: “The effect of the resurrection orb applies until the
Ever-living counter of the bearer is removed by a failed
Reanimation Protocols roll (so roll for the bearer’s counter
last!)."

Right. Everliving is basically an enhancement of RP. Characters get a better version than the grunts.

Sorry to jump on this thread but I wish to ask a further question.

If a Royal Court, with five lords was wiped out in CC, they would all get to make the 5+ RP roll (4+ with orb). Let's assume enemy forces have taken the position, but there are five locations within 3 inches of the counters and 1 inch away form enemy forces. The rolls are taken and the lords come back. Now, they are out of squad coherency, can't pile in as none are in combat etc.. so the unit is effectively destroyed as well. Is this the correct reading of the situation?

Ffyllotek

Not entirely sure on that last one, I had thought models got either RP or EL but not both...but don't have the Codex handy to check. However, I can say this - a model that only has EL doesn't count for being able to roll RP rolls.

So for instance, if a unit of warriors gets wiped and only an attached EL character is left, that warriors unit is gone.

The rules work very well for a unit with a single IC attached, or even a single RC member. But they don't seem to work very well for Royal Courts themselves. The rules speak of joining units eligible to join. AFAIK, the only unit a returning lord can join is his own, whether deployed with a troop or elite choice, or deployed as his royal court.

The 3" restriction applies only when the EL model can't attach himself to his original unit.
So in the case of a royal court that has been wiped out you roll RP for EL counters one by one following the 3" restriction. The first model that returns to play recreates the royal court. You can then roll all the other RP and put all models that return to play in coherency.