This happened last night.

Ship A is flying over Ship B. Ship A runs into B

In the rule book it states that when you collide you move the ship back along the template until they are no longer over lapping

So ship A has to move back along the track.

Now there is another ship, ship C in the way so A can't fit in.

My question is does ship A go back to its starting point basically, or would it have to fit in between ship B and C until they no longer over lap?

It backs up until it is touching but no longer overlapping anything. If that means that it ends up not moving, then it doesn't move.

So you originally tried to overshoot TWO ships?

Now if you're end position you land you on B then you have to back up until you're no longer on B. If you are one C after you've backed off B then you need to back up even more until you are no longer on C. Part of me is wondering how you think you would fit A between B and C if backing off B puts it on top of C; if it "fits" then you stop there but if not you keep backing up. Maybe I have a better and/or related question:

"How much 'wiggle' is allowed when you move back down a template?"

Maybe I have a better and/or related question:

"How much 'wiggle' is allowed when you move back down a template?"

Maybe I have a better and/or related question:

"How much 'wiggle' is allowed when you move back down a template?"

None. You are supposed to align the ship backward along the template, aligned using both the front and back guides, to the point where you just touch the ship you overlapped.

hard to do this, especially with large ship bases and the hard turn 1 template that is smaller than the giant plastic square

It's not really hard to do. Generally in those cases, depending on the move you tried, you either slide straight forward into the nearest ship, don't move at all, or just sort of bank/turn along that arc until part of your ship touches it. You're probably just trying to execute more maneuver than you're actually capable of with the limited space involved.

So you originally tried to overshoot TWO ships?

Now if you're end position you land you on B then you have to back up until you're no longer on B. If you are one C after you've backed off B then you need to back up even more until you are no longer on C. Part of me is wondering how you think you would fit A between B and C if backing off B puts it on top of C; if it "fits" then you stop there but if not you keep backing up. Maybe I have a better and/or related question:

"How much 'wiggle' is allowed when you move back down a template?"