Is Lunge basically charge-lite for people with leap/climb and CCE? Or does the character with lunge need to be in base combat with an opposing character first? The card intimates at this with the auto-break away thing, making it somewhat unclear to me. Thanks.

When in doubt, consult the source:

LUNGE

Prerequisites: Close Combat Expert or Leap/Climb

Choose a Character

When the character is given an action, but before it makes a close combat attack, it can break away automatically and move up to 2 squares.

So, when you give the character an action, any action, that ends up causing a close combat attack, you can move the character up to 2 squares before the attack.

If said character happens to be adjacent to an opposing character, it breaks away automatically. If it isn't, then it doesn't need to worry about that part. Nothing in the description says the character must be adjacent to another character to use it.

Compare to, say, the wording on Poison as an example of something that only works on adjacent characters.

In some ways it's "Charge-lite", but in other ways it's better. You can initiate it at any time as long as you make a close-combat attack after your move. However, you can use power with Lunge that you couldn't use with Charge (Close-Combat Expert, for example). Someone please correct me if I'm wrong.

you are both correct

how about if the action nets you a free close combat action, will lunge still work? ive been awat from the game and needs to review some stuff

If you check out this post you will see a brekadown of Lunge (and also includes Maneuver and Vault).

Aw, heck, here's a quote from that thread (which was asking about a Charge/Flurry combo using Lunge, Maneuver, and Vault). Can't say I don't make life easy for folks...