As for the overlapping problem, go through a loop of each of your units. Each unit has a width range and a height range based on the size of the unit's rectangle. Now, create a nested loop that goes though the rectangles of each of the enemy units, check to see if any of the four corners of the enemy's unit rectangle are inside of the range of the unit that you are testing. If true, mark that enemy unit as in conflict with the current unit. Continue testing. At the end you'll have a list of your units that are in conflict the enemy units. From there you can add up the factors such as unit strength and make your combat resolution checks.
While each war game is different, I'm something of a war game designer. So, feel free to post questions and I'll see what I can do to answer them.
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TAZ
Disclaimer: I started with DBP and I have not used DBC. So, if I do post any code, you might have to take it as psuedo code and modify it to work with DBC.