A.) We've been playing "capture" as "Take hero and put in Land of Bondage. If a successful rescue attempt is made at that LoB, one of the options said player has is to return the hero, instead of a LS. Hero is placed in owner's territory.
I just checked the REG, and it looks like a captured hero is simply treated as a LS, which leads to two questions:
1.) Why do we have cards that say "Treat as a Lost Soul"?
2.) What's the point of Leper Colony?
B.) If one character is immune to another, can the immune character still win initiative, or does initiative stay with the non-immune character until immunity is taken care of?