Hi William
I think I mis-read Mike's post. I thought he posted that it didn't move into combat that way but re-reading Mike's post he posted that it did (my bad!). I'm still not convinced the element is in front edge combat....but I also accept there is a sentence under the overlap rules that indicate the -1 does apply. If you look at the wording William I think you'll find the element isn't actually in an overlap position.
Andrew
You are quite Andrew, is this case the flanking element did not move into this position, it is as a result in combat. You are also quite right as to whether this is overlap, it seems it is not,
The line I think you refered to is
An element overlaping or in front edge contact with the flank or rear etc.So as usual I am going to change my opinion

The element on the flank is not in a legal flank contact ( and can not move into one due to a TZ ) so IMHO it might have to EMTLU to form a proper overlap ( either side edge to side edge ) or more usual overlap position ( from a nice group with the other element ).
Worse than the fickle plebs.
William