Take 1 German HQ and 2 platoons of US Engineers neither is entrenched (though the Gerry HQ is unmoving due to it being the defender)... In open ground no smoke no shell holes etc.:
Advancing on the HQ unit (even one hex at a time) required getting within one hex of it to sight it initially.
The HQ unit returned fire almost every single time it was fired upon OR an Engie squad moved within view of it.
Now I'm estimating but that's about 6 times for movement, and more than 12 times for counter fire. This is a very low estimate as the Engineers -- though suppressed -- still often had 3 shots each for a total closer to 18 counter fire shots from the HQ; and at least one of the squads was fired on twice when it moved more than once. So around 25 op fire shots were delivered by the Gerry HQ.
The HQ also inflicted multiple instances of heavy casualties to the US Squads as many as 4 in one shot (SMG burst from 2 hex range). Where as closing the distance and assaulting the HQ with Rifle/grenade/Flamethrower/Sachel charge combinations -- when the Engie's got a chance to use them without interruption by opfire -- did no more than 2 damage.
End result was 20+ US casualties to kill (presumably) 5 German Command staff (crack paper shufflers, and Elite radio men to be sure) and one Oberst Stiener, err.. rather Col. Ziegler. Though even had the HQ unit been elite paratroopers I would still find the results somewhat remarkable.
This was tried multiple times, and as tactics go I used suppressing fire from 3 unmoved Engineer squads (2 to 3 hex range), then closed with the other 3, afterward moving the platoon that had already fired.
Disregarding the (logical) lower accuracy of the moving Engineers, I think close/infantry combat might need some tweaking. Basically 6 guys shouldn't be able to effectively fire on 6 squads of 9 men each in the course of 60 seconds... especially not 20+ times.
Suppression seemed to have minimal effect on the HQ's accuracy, perhaps suppression effects should be raised. Also it's amazing that they were never suppressed to the point of being unable to fire. Which I might add happens to my troops all the time, and indeed in this little test scenario repeatedly.
Other things:
AIP units seem to be able to retreat multiple times without regard even to their maximum possible movement. I've had Ranger squads chase fleeing AI units to the full extent of the Rangers movement(s), and then still further when another of my units took after them in the same turn. My units never retreat like this, in fact human controlled units often seem content to be annihilated where they sit instead of retreating one hex, let alone 6 8 or even more hexes.
A sniper can kill a Jeep (and I presume any other unarmored vehicle) with one shot... because of their high fire control they not only have an extremely high chance of hitting, they also seem to have an overwhelming chance to blow it up. I've seen recon Jeeps take MMG and HMG shots and survive with "suspension damage" etc. The sniper is almost the perfect soft vehicle killer.
Which brings up my next question: does the speed or fact of a target's movement make it any harder to hit? In one instance a moving Jeep was blow'd up by a sniper who had a 90 some percent chance to hit. I don't know if you've ever tried to fire a scoped weapon at a moving target (much less a fast moving one) but it's not all that easy to hit, much less hit a Jeep in such a way as to blow it up.
Units that have absolutely no explosives can do close tank assaults... Crewmen and Snipers specifically. I could see a Sniper with a Grenade pulling the Hero bit and dropping the grenade into an unsuspecting unbuttoned tank from his Tree or the window of a house... But with a bolt action rifle and without so much as a hand grenade? 8-0
(I've edited my OOB's to give them a couple grenades just so this doesn't look so peculiar)
The Kar 98 Mauser is an effective anti-tank weapon =) well... Okay maybe that's an exaggeration
I lost an M8 Greyhound to the rifle fire of a depleted Gerry Squad! At 3 hex range, not a grenade not an AT weapon but a k98 bolt action rifle...I'll probably think of some other oddities after I post this, but whatever you guys do, take your time, get some rest. Any tweaking can wait for 3.0
Simon
The default is the number of men as the percentage of successful close assault. If there is a 4% chance of a close assault happening it is human nature to ignore the 96% of the time nothing happens and remember the runs of bad luck. I wouldn't give snipers grenades - the game assumes a small chance of troops having something, or finding something, when they need it. Again, stuff like that happened! 
Which points to an area that German equipment seems to be tactically deficient- they just don't have a lot of 50CALs in their platoons or vehicles, while the Americans simply seem to have 50s just laying about in the mess tent 