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If an ethereal and his honor guard unit are in H2H, can you still have units draw LOS to him to benefit from his leadership ability?

Depends on where the Ethereal is located in the combat, I would think. Close combat blocks LOS up to the height of the participants utilizing model sizes (in this case Level 2). If there are Honour Guard or opponents inbetween the Ethereal and the reroll unit, then LOS is blocked and the unit cannot reroll their Morale checks. If the Ethereal is on the outside of the combat, then the unit should be able to see him and all is good.

There's also a school of thought that the "swirling melee' blurb from the rulebook means that the combatants are moving back and forth and that the actual positions of the models are irrelevant. The Ethereal is running around whacking stuff with his Honour Blade so he's a little busy to be inspiring the troops. LOS cannot be traced to anyone in or out of the combat in this situation. I dunno about this one since the 2" combat zone for close combat is pretty important and there wouldn't be much need for it if everybody was just running around chopping away.

This is just like the Vindicare question. A model that's in HtH blocks LOS to itself.