When dicarding for collatereal damge, iF another damage is pulled when discarding the first 2 cards, we usually play you have to pull 2 cards for that collateral damage also.. But when you pull the additional 2 cards for each other collateral damage in the discard pile, if another one comes up during that, do you pull another 2 cards? Is that clear?

You get CD, pull 2 cards, then see how many CD's are in the discard pile, including the first 2 cards you've already pulled, when then pulling the rest of your cards, if you pull another CD, do you pull an addional 2 cards?

Only the first copy of Collateral Damage (the one that was reveled from the Encounter Deck) has its When Revealed Effect triggered. The whole situation is not quite as bad as you described

The wording of the card hinges on where the word "then" is used.

"Discard 2 cards from the top of the encounter deck. Discard an additional 2 cards for each copy of Collateral Damage in the discard pile."

It all happens at once, there is no if/then or "do A then B" effect between these two sentences. The very first thing you do is count the number of collateral damage cards in the encounter deck discard. Don't count the one you just drew, it has not been discarded yet (plus it has already been accounted for in the first sentence of the effect). An alternate (and sort of silly) way to write the card could have been: "count the total number of copies of collateral damage currently held in your hand and in the discard pile, then multiply by 2"

So now X cards are discarded. The only text that matters is the card type. Only locations are counted. If you see another copy of collateral damage, ignore it. There is no ongoing effect that will force you to trigger its when revealed effect.

Hey, thanks! That helps a lot!

Sorry to disagree, but this was discussed before (see http://community.fantasyflightgames.com/index.php?/topic/86498-collateral-damage-peril-in-pelargir/ ) and Caleb was asked and responded saying that each sentence must be processed separately. Here is the question/answer

Legolas18:

if I discarded another copy of Collateral Damage from the encounter deck with the initial 2 discarded cards, does that mean I have to discard 2 more for the copy just discarded? Or does the "Discard an additional 2 cards from the encounter deck for each copy of CD in the discard pile" effect happen immediately, at the same time as the initial 2 discarded cards, negating any other CDs discarded from having any effect?

Caleb:

"When Revealed" effects are resolved on a sentence-by-sentence basis. When Collateral Damage is revealed, you discard the top 2 cards of your deck first. Then you discard 2 additional cards for each copy of Collateral Damage in the discard pile. Lastly you count the number of locations just discarded and raise your threat by the appropriate amount.
If a copy of Collateral Damage is discarded by the first sentence, then you would count that copy when resolving the second sentence.

What if another copy is discarded when working out the 2nd sentence of discarding 2 cards for each one already in the pile. Since the cards are being discarded to count locations, aren't new CD's going right into the discard pile, or is the number fixed and set by what was in the discard pile when you went thru and counted it?

The number of additional cards to discard is determined by how many copies of CD are present in the discard pile after you've discarded the first two cards. At this point you are simply resolving the second sentence of instructions - as you noted, what matters now is how many locations (overall) end up being discarded in order to resolve the final sentence on the card.

Good, that makes sense and is how we first played it, but the card was a little confusing at first.