[SG] Close Assault Questions

So last night I set up to embed the mechanics of close assault
in my mind and immediately ran into problems not covered by
the rules that I may have to house rule.

Situation, two squads of 4 are being activitad by the platoon
commander to close assault an enemy squad of 8 that is 10 inches
away.

commo rolls made, close assault rolls made all around.

First squad (an elite squad) rolls 6 on its' combat move and
moves into contact.  Second squad (green) rolls a 1.

I now have a half contact, how is this handled?  Seemingly
by the rules I should fire the whole squad of 8 at the 
green squad.  Proposed house rule, do 1 round of combat with
the elite squad and the squad of 8, no fire at the green squad.

OK, Ran fire, green squad makes confidence test and continues
(they didn't, but I modified the die roll) and moves into
contact.  3 squaddies remaining.

Run combat, elite squad kills 3, loses 1.  Green squad loses
2, kills 1.

squad of 8 (now 4) makes morale.  Now, the confidence roll
for my remaining two squads, is the needed roll LV+3
or does the elite squad do LV+1 and the green squad LV+2.

Can I have half break and run while the other half stays
and fights?

I noticed that armour has no affect on a close assault, true?

One other thing that concerned me.  An elite squad with
assault shotguns closes with a green squad.  The elite squad
rolls a d12, the green squad gets a -2 die shift.  d6->d4->???.
Can they fight back?