Once a challenge is accepted the two rivals are moved in the ranks so that they are opposite each other. If the models are especially large it may be more convenient to remove them altogether and place them beside the fighting units. When combat is worked out these two will fight together. No other models may attack them even if their bases are touching, and no Other models may shoot at them or use magic to attack them. Once the challenge is underway no further challenges may be issued in that combat until one character is slain. The challenge might therefore last over several turns of combat.
If characters are riding monsters or steeds which have their own attacks then these fight during the challenge as well as their rider. If the character is riding a chariot then no other crew can fight, but creatures pulling the chariot can fight.
Any attacks from a chariot impact are worked out as usual, ie before the rest of the combat and before any challenge. Because any wounds inflicted represent impact damage they do not count towards the challenge, although they will count towards the overall combat result as normal.