Hello Tom!!!
Sounds really great!!! Answering your questions:
-setup time: it does: it shuold be 3-4 turns? It should be written in the weapon card?
-the "-1 turns" for the machinegun: Exactely, it's written somewhere in the rules, i should make it VERY clear in an example box in the final manual! The idea is that after you've set-up the gun (which requires a remarkable time, making it useless for quick actions) shooting is a rather easy task.
-Machine gun can hit only one figure
per burst, but it has 2 or 3 burtst. AoE is an abstraction that games like Gruntz used to indicate that more than one target could be hit, but i'm not fond of it. Having 3 bursts, it has the firepower of a heavy fireteam!!!!
-Boost: that's unclear in the rules, that's right. I'd say yes! remember that irregulars are fanatic, so boost works for 1 turn more! I use it like hell in the last game on friday!
-Damage 2/6: yet another unclear point in the rules, you're right: 2 is for infantry, 6 for vehicles! Rocket launchers are not much effective against infantry, while grenade launcher have the opposite effect, more or less.
-Overwatch: the turns duration is variable, up to 7 turns (one round). But you MUST do something between two overwatch. A Wait action of 1 turn will work.
-Melee: Good point. I Should re-read the rules about. But as you did seems smart!

I can't wait to read the second part of the battle, if you're planning to continue it! ^_^
as a note, we rarely use heavy covers, they mostly are light covers. I'd say that rocks should be light covers, while heavy ones are more like bunker positions and sandbags specifically meant for covering.
Again, GREAT game and great report! I'm so lucky to have you as beta-tester!!!