Hi William
The answer to this lies in 2 places.
Firstly, page 35 states overlaps and flank contacts only give a single -1 tactical factor for each flank overlap/combat, and it also stipulates that, for the combat in question, they can only inflict an adverse tactical factor.
Secondly, the preamble at the top of 36 states tactical factors, rear support factors etc. are added to a combat factor. An overlapping element does not have a combat factor for the combat in question.
I trust this helps...?
Andrew
Of course it does help, I would not yet consider playing it any other way, my thinking may harp back to DBM 3.1 where IIRC a flanking foot element in rough could in fact inflicy an extra -1 on mounted opponent.
OK nitty gritty time, I suppose any misreading that might happen is that most of the Tactical factors for Melee are listed as
Close combat with the exceptions of ( I think) this +1 for mounted in
front edge combat and -1 for flanks/overlapped or rear in
Front edge combat, tbf there may be no difference between this 2 combats ( from Pg35) it is of course a little confusing to have them termed in seperate ways with tactical factors.
I do think your wrong about 'only' inflicting an adverse tactical factors, as it appears it does not say 'ONLY' , though I would agree that Pg36 may indeed sort the thing out.
Now I am not really trying to be difficult but would it not be easier to understand (especially when first starting out with DBMM) that all the melee tactical factors were phrased as
Close Combat 
William as difficult as ever.