First off check this out:
http://www.wizards.com/default.asp?x=ah/article/ah20061110a
Now that is similar to the rule book.
We have a hex with 6 Allied INF in it (the most that can be in any one hex.) This hex will be attacked by 1 INF, 1 ARM and 1 ART.
We pull down the combat strip till we have boxes matching the number of our defending units (which for the INF is all the way out you can only have six.)
We figure the dice we will roll- 1 for the INF, 2 for the ARM and 3 for the ART for six total.
We roll our dice and each result of less than six is a hit. We get 1,2,3,4,5,6. We can think of these as addresses.
So we have six hits. Now we use the results to determine what units will be destoyed, retreat or hold their ground.
Starting in the top left and working our way down we put the dice in the combat strip. In this case each box will have one die. Any unit with one die in its box must retreat one hex. In this case all units must retreat.
Were the results 1,1,2,2,3,3. We would have three boxes with two dice each and 3 boxes with no dice. In this case 3 Units are destroyed and 3 units would remain in the hex. A unit must have at least two dice in order to be destroyed.
Were the results 1,1,1,1,1,1 only one unit would be destroyed. All the other hits go to waste and five units hold their ground.
In all cases the Axis units remain in the hex they attacked from until they are attacked and forced to retreat or moved in the movement phase.
OK that makes it much clearer then the book states it.
Thank you for your time in helping me understand this.