Thank you for you kind words Mr DOCdeath, I fully appreciate it. Play at as you want, in my local GW, we played it this way. I do not agree that the question has been answered and stand by what I said. However, I fully withdraw myself from this thread, and will make no further comments.

Lets all try and play nice in the sandbox ok gentlmen? While I believe number 2 is the correct way gothmogs rule functions he also does not have to use it. Including him in a queue would then be disingenuous since this could be abused by both sides.

If both players wish to make Heroic actions in the same phase, then sides alternate picking a Hero to make a Heroic action. Roll a dice to randomly determine which side has the first pick - 1, 2 or 3 the Evil side goes first; 4, 5 or 6 the Good side goes first. Miight cannot be used to affect the resullt.

Whenever an enemy Hero calls a Heroic or Epic action within 12", Gothmog may immediatlycall an identical action without expending a Might point.

If both players wish to make Heroic actions in the same phase, then sides alternate picking a Hero to make a Heroic action. Roll a dice to randomly determine which side has the first pick - 1, 2 or 3 the Evil side goes first; 4, 5 or 6 the Good side goes first. Miight cannot be used to affect the resullt.

What do you mean Jobu?

There is a roll of a D6 to decide which duel goes first.

This is how we did it, I see no problems, the rules and the intentions of the designers indicate that this is the correct way to do it.

...work out their actions in the order they were picked.

OK, I thought you might mean something like that.

My read is that Gothmog's ability functions outside the normal alternating sequence. that's what the "immediately" part is doing. He doesn't have to declare an intention to call an action, he simply responds to what the enemy does. So say you have Aragorn and Boromir in a fight with Gothmog and Amdur

At the start of the fight phase both players declare their intention to spend might. (I don't see anything that says a player has to declare how much might or how many heroes they intend to use, just "I am spending might" (or not))
The players roll off. Good side wins.
Aragorn calls an Epic Duel vs Amdur
Evil player says he is using master of battle and has Gothmog call Epic Duel also, targeting Boromir.
Then the good player goes "Oh [word deleted], I forgot you could do that!!!"
Then the normal sequence resumes and the Evil player has Amdur call Epic Rampage
Then it is good's turn to call an action, if he so chooses, and so on.

Then the actions begin to be resolved
the first action to be called was the Duel between Aragorn and Amdur, so that resolves first
Those two heroes are now due to act so they have a chance to call "before they fight" actions. the good player declares that he is going to use might, but the evil player passes.
Aragorn calls an Epic Strike
Evil player says he is using master of battle and has Gothmog call Epic Strike as well
The good player is done, then the duel proceeds.

That is how I and my group plays it. I admit, there are a couple points that I am not positive are correct but they involve the heroes' eligibility to call actions, not the timing of any of them.

I agree with this, my example was how gothmogs rule may be abused/mishandled by doing it another way. I do not think gothmog gets to force a roll off with his special ability since he is not spending might to get in the queue.

Just because you think it affects game balance does not mean that it should not be played that way.

Just because Gothmog doesn't expend might does not mean he has to wait. As for his coountering, when Gothmog's opponant declares they will do a heroic/epic action, they say what it is and then Gothmog's controller decides whether or not they want to copy it. (I played against Farimir sacrifice)