Re-training oddities...

[Moriboy]

I've noticed that in most cases the units re-trained are fine and fully billeted with upgrades & etc, but I've had depleted units of say 40 or so come out of the dojo with the same number of men, albiet with the unit upgrades.

I've also send in negative honor generals with a loss or two under their belts, and had them return with "no losses". Whats up with that?

I absolutely love this feature though! Satisfaction is sending in units of honor 3 Kaga & Kii monks and having them return with legendary armor & weapons!

[Dixie Flatline]

You can only retrain units (i.e., bring them back to full strength) in provinces that have the facilities to train them in the first place, but apparently you can do upgrades anywhere.

Say you've got a no-dachi unit with 40 men and no upgrades, and they're in a province that has a legendary armoury and swordsmith, but no sword dojo. If you drop them in the training queue, they'll come out with legendary weapons and armour, but with no new men, since there was no sword dojo to train them.
One thing I have noticed is occasional honour dilution in re-training. I had a NC unit which was down to one man, but the unit honour was up to 3 (without a general bonus). After I sent the unit through retraining, they came out at full strength with a unit honour of 1.

As for the losing generals being reset -- did you check that the name of the unit leader was the same? Maybe when they retrained, a new unit leader (and therefore a new general) was appointed.