Alright, to start figuring out the game, I decided to run a sample combat between a Hellhound (OW, page 46) and a Malk (OW, page 48). Here is how it "went down".
Scene - Woodland clearing - aspects - Huge old mossy tree trunk
Bramble bush
Trees
Medium Grass
Each fey has 2 fate points.
The hellhound is roaming through the woods, hunting. A malk is doing the same. Both come within perception range of the other. A roll will be made to determine who notices who, first.
I decide difficulty for the Hellhound is 4 (the malks stealth). Difficulty for the Malk is 2 (the Hellhounds survival).
Hellhound rolls a -1 against 4 (alertness against a value = to malks stealth) This results in a 2, or a failure of 2 to notice the malk. (Hellhound has good (+3) alertness.)
Malk rolls a 2 against 2, which results in 5, or 3 shifts (significant success) Malk has a good (+3) alertness.
GM rules that this lets the malk add an “oblivious” tag to the Hellhound.
Round one: Hellhound is unaware that it is in combat. Malk makes a stealth roll - free tagging the oblivious, to set up an ambush. rolls negative one. add +6 (2 for tag, 4 for stealth). Ends in 5. Hellhound rolls alertness (+3) against a 5. Rolls 0, so fails.
When an Ambush succeeds, the target can only defend at mediocre. Cannot take standard action.
Malk spends a fate point to tag oblivious for attack. Rolls a 1. +5 (+3 for fists, +2 for tag), Hellhounds rolls a 0. Since its a being ambushed, defends at mediocre (0) instead of good (+3). Malk gets a 6. With a +2 for claws, thats a total of 8. More than enough to take down the hellhound. The Hellhound decides to take a moderate consequence (belly slash), and a minor consequence (torn ear), to reduce the attack to 2 stress. It marks off its second box. On the bright side, oblivious is now gone.
The Hellhound wants to offer a concession. (And neithers Malks, nor Hellhounds are beasts, so its doable). So he offers the following concession: (its a 3 parter) Bring food to the clearing and leave it every other day for a fortnight, enough for a malk and a cluster of cubs. Be indebted to the malk, until the debt is called in. And lastly, not reveal the debt to anyone.
Notes: Reading back over it, I think the oblivious tag being granted for the significant success is overdone. At the least, it should have been a fragile one. Perhaps sticky on a potent success.
But, do I have the basics right?