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My general understanding of challenges is that there can only be one at a time, and once the challenge has been completed (either because some died, or because it was refused) another can be issued.

That understanding may be in error.

On page 64 of the rule book it says that one challenge may be issued "per close combat". Later on however it seems to imply that another challenge can be issued after the first is resolved.

So given that which of the following is correct? Assume two units in close combat with an arbitrarily large number of characters in each.

1. Character A issues a challenge, Character B accepts. Character A wins killing character B. In the next round of close combat any character can issue another challenge.
2. Character A issues a challenge, Character B accepts. Character A wins killing character B. No further challenges can be issued.

If 2 is correct then how is "close combat" defined. If another unit with a character charges after a challenge has been resolved, can the new character issue a challenge? Is it different if the challenge is still on going when the unit charges (obviously the new character has to wait until it resolves)? Or does the new unit charging in make it a new "close combat" and thus anyone can issue a new challenge?

2 is not correct.

Pg 64 has something along the lines of "as long as a challenge's been fought, no other may be declared" , implying that once one of the challengees dies you can issue another in the next assault phase.

rigeld2 wrote:
2 is not correct.

While I might agree with your assessment, but what is your logic? There is an implication that more than one can be issued later in the section, but it states out right at the very beginning of the section that only one challenge may be issued per close combat.

I'm looking for ammunition for the argument as it seems there is a GW store where the one challenge period is the accepted rule. If the rulez boyz still existed I would ask them, but ...

@athelred. You might want to review the wording on that a bit.

The first part of the statement is important. "Challenges are issued at the start of the Fight sub-phase...."

There is a new Fight sub-phase each player turn. At the beginning of that fight sub-phase you check to see if any challenges are on going. If not, start a new one if you want.

Other important parts on that page: Under Combatant Slain: ".... is still considered to be ongoing until the end of the phase." This part is acknowledging that the challenge condition ends at the end of the phase in which one of them is killed.

But the absolute most important quote is on the following page (second paragraph under Round Two):
"Even though further challenges cannot be issued in a combat until the existing challenge has been resolved..." sums it up nicely. Combining these, we have permission to issue a new challenge at the start of the fight sub-phase which begins AFTER one of the challengers has been killed.

As rigeld2 said, "2 is not correct."

Rule #1 regarding GW employees - whether in store or on the phone: They rarely know what they are talking about. Most store workers only have a passing knowledge of how the game actually works and freely make things up on the fly in order to try and not appear to have no clue what it is they are selling.