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I've been googling and searching forums for a couple of evenings, read and re-read the rule book, but still not sure I fully understand formations:

I'm looking to add a Storm Wing formation to my sons DA army as part of his Xmas present. I understand this is a Codex:SM unit, and can be taken in his army without issue. However I have 2 questions:

1) painting - Is it correct to paint it in Dark Angels Green, or would it need to be painted to match a Codex:SM faction?

2) the dataslate states only Codex:SM troops can embark, which means he can't load it up with his DA troops. However this was before 7th Ed battle brothers/allied transport rules changes - does 7th Ed supersede the dataslate restriction? Thanks to google I've seen it argued both ways, just wondered if there was anything definitive out there.

The painting is the more important question, have to have these done by Xmas...

If anyone could point me in the right direction it would be greatly appreciated.

1) paint doesn't matter. You can't paint them however
2) With the changes, it's still like that, because it is still an explicit rule.

1) If you run SM allies to DA, you're best-off painting them non-DA. Maybe as a successor chapter of the DAs, so emblems can be similar, but the scheme different.
If you do paint them in DA green, paint the base-rim a different colour, or something else that makes them stand out. Allies should always be easy to distinguish as being apart from the main force.

2) Usually FAQ > dataslate > codex > rulebook.
But, as you said, the 7th-ed rules were released last, so they probably win.
I've not seen the dataslate, so cannot say conclusively.
Also, I haven't seen a dataslate get an FAQ.

No need for the allies to be painted differently if there is no mechanical difference between the two.

But in any case, spesific rule in the formation trumps the 7th edition rulebook, so only codex marine dudes could embark, you might want to consider another formation than.

Paint them in DA colours, I say. The units in the Stormwing formation don't exist in a DA rmy, so there can be no confusion as to what they are.

No idea on the transport, I'd say its the kind of thing you just have to discuss with the opponent before the game and go with whatever they say.

Thank you for the responses, that really helps. Think I'm going to go with the DA green, but try to get some markings on there to differentiate them, not sure what yet