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I've just started to learn this game and would like to make sure I understand this correctly (using the example from page 18 of the rulebook):
Visibility is 2+ hexes. German unit A Engages the American unit and gets a Firer Loss & Traffic result. The result is ignored because German unit A is in Terrain and can only be shot at from adjacent hexes.
Is that correct?
No, the results still apply. 7.1j describes the terrain effect on the target, and the unit in question is the instigator here, the firer.
Yes, the results can cut both ways, but in any given engagement, their is a firer and a target. Only the Target benefits from the protection of the terrain like that.