Was about to say that I didn't know of an FAQ either.. but then went looking through my files, and found out I had it! A pretty recent edition too, so likely the last one released. Put it in my public dropbox folder, you can get it here:
https://dl.dropboxusercontent.com/u/584 ... y_2012.pdfAs for the second question.. it depends. You may want to include the rules for being broken in older scenarios, but using the then-current set of rules (a model moves its full movement distance towards the nearest board edge, only being removed when actually moving off). Can't remember the exact ruling, there probably was something about running away from enemy models too. These would be a lot less harsh to the broken army, as models aren't lost immediately.
The reason for playing with the broken rules are twofold: firstly, some scenarios will be designed to have the breakpoint balance out the numerical advantage of evil: they start en masse, but once reduced by the mighty heroes of Good, will run for the hills. Secondly, there are some scenarios that specifically state not to use the rules for breaking: I'd say that when a book includes that for any mission, play all the others from the same book with the rules for breaking.