Quote Originally Posted by Just A Girl
so you guys are saing that +3 armour units in loose formation are technically +4 armour but -1 defence?

Or does it only work if you have 0 armour bonus ?
No, you are quite correct. The units get a +1 armour bonus because they are better able to dodge missiles (more space) in loose formation, but they also get a -1 defense penalty to remove the effect of the amour bonus in a melee. Remember that a point of armour equals a point of defense in melee.