Sorry if this has been covered before but i couldnt see anything:

The following occured in our game last thursday and made me think that frenzy wasnt worth the xp investment (when my guardsman finally gets to assault veteran that is!)

My group were fighting dark eldar pirates and i was doing reasonably well in H/H with my swift attack, two weapon wielder (melee) and ambi talents right until i got taken down by fatigue damage off a few minor crits. The groups techpriest then shot me with a dose of Frenzon to get me back in the fight and then things got strange...

Instead of taking a full action to have multiple attacks i was limited to one attack (all out attack being mandatory from frenzy), unable to parry or dodge (again from the all out attack action) and forced to engage in melee against the nearest enemy (which caused a minor issue as the nearest enemy (by 2 meters) was actually up on a podium and not easily accessible other than via a ladder - there was another in charge range on my level!)

After finishing the session i went throught the skill with my gm and another mismatch came to light with the battle rage skill - it grants you back the ability to parry as frenzy removes it, but the all out attack action still precludes parry and dodge, so you still cant use it!

Have any other GMs/Groups encountered this problem? Any ideas?

As for the all out action, i would say that having the talent that lets you parry while frenzied would allow you to chose to chose another form of attack as opposed to having to use all-out attack. Battle-Rage states that you are able to remain in control despite being frenzied and that's what enables one to parry. That being the case, I would rule that as long as you are engaging the nearest engagable enemy in melee combat, you can chose which attacks you wish to use.

On the whole pedastel (or how ever the hell that word is spelled) thing, I think you guys got too caught up in the nearest part of the description without considering the possible part. "... you will take any actions that have a reasonable opportunity to engage in melee with the nearest enemy." You will go after the nearest enemy that you can engage, not the nearest enemy period. ;-)

Isnt there a talent that lets you use your parry attack for a second attack during an all out attack? Or am I on crack

Yes. Furious assault does but you have to make a WS test beforehand to see if you get to do it.