Yes, all houses shift positions to fill only the first three positions. The houses that are now on position 1 get their respective Tokens (Throne, sword, Raven). In the Raven track, you should modify the number of stars each player gets: First (the holder of the Raven token) gets 3 stars Second gets 2 stars Third gets 1 star.
What my friend is trying to ask is: Do you have to be supported in order to use a military support ally card? Azgaz figured that in order to use the card you MUST be supported by an another player. He got this meaning from the FAQ and this sentence (page 7): The attacker and defender should play their Military Support Ally cards only after other players have declared their support. I say that you can play this card regardles of other players and their support, BUT it has to be played after total combat strength has been announced. So, please answer and clarify this, because Azgaz is driving me nuts with his literal translation of the rulebook (english is not our first language). Thanks!