In the base rules, it says that if you go insane, you go the Asylum and have no further encounters that turn (and lose half your items, etc.). In the Dunwich Horror rules, it says that if you go insane, you draw a Madness card and go to the Asylum. It doesn't specfically say whether you have no further encounters that turn. So, if you go insane and choose to draw a Madness card, do you also have an encounter at the Asylum that turn?
encounters after drawing a madness card
The Madness merely replaces the discarding of items and whatnot, everything else appears to be the same, at least in intent. So no encounters, I'd say.
This was discussed in an earlier thread: http://new.fantasyflightgames.com/edge_foros_discusion.asp?efid=5&efcid=1&efidt=48854
The consensus was that according to the rules, you would not have an encounter.
Ah. Thanks!