Does the 400exp that players start with count towards thier frist rank? Or is this free exp they get to spend?
Starting Exp.
We count it as free XP you get that doesn't count toward your rank.
In the RAW yes, except the background options in the IH.
In the errata is says it counts toward rank.
They errata-ed the errata? Nice. Do you have a link to the updated version? The original one doesn't mention it.