The setting for the version 0.5 update of the rules was Talavera. This version has a slight updated to combat resolution which makes outcomes more "push" rather than "destroy." In brief, whoever scores the lower number of HITS in a combat is considered the loser, and both sides lose that number of stands. (There is always a one-stand minimum loss, unless both players fail to score a single HIT.) The difference between the number of HITS is used to calculate a retreat distance. Each difference creates 6" of retreat.
For example, if I score two HITS and my opponent scores five HITS, we'll each lose two stands (the lower of the two numbers), and as the player who scored fewer hits, I will have lost the combat. The different in the number of HITS is three (five minus two), and so I will retreat 18" away from the enemy (3 x 6").
If a player is forced to retreat through other Units, they receive a Fatigue marker. If a Unit is forced to retreat through impassable terrain or off of the table, it is eliminated.
You can find a link to this latest version of the rules at the Rules page. Link is at the bottom of the blog, or you can find them here.