Lets set up an example where I have 2 ships, 1 directly behind the other upon initial placement with just a small gap. The one in the front does a 1 forward, then the 1 behind it does a 2 forward and bumps, loses his action, and backtracks for appropriate placement.

Is there an explanation or FAQ that shows how to proceed on the *next* turn if they both do a 1 forward? Are they considered touching and loss of action happens again? Or are they now in just a super tight formation and both receive action phase?

They are not considered touching. It's in the FAQ, search for "overlapping inline ships"

Excellent, thank you. My Commodore 64 I'm typing this on has a horrible, horrible time loading the FAQ link.

Excellent, thank you. My Commodore 64 I'm typing this on has a horrible, horrible time loading the FAQ link.

Here I would have thought it would be amazingly quick on things as it doesn't have nearly the overhead to go through electronics these days. I remember being able to sit down, hit the switch, and everythings is up and running by the time you look up at the screen.

Excellent, thank you. My Commodore 64 I'm typing this on has a horrible, horrible time loading the FAQ link.

Good grief, man, are you in a museum exhibit typing this?!?

LOAD "*" , 8, 1

RUN

It still takes a while