I have to start this off by saying a big thank you to IceHot for the great games that we had on Tuesday. He was visiting OR for his job and I was lucky enough to meet him and have to great joy of playing him. I was running the Iron Man / War Machine that I had pulled on Sunday in a West Coast Avengers team against IceHot's Spider-Man and his Amazing Friends team. Lets just say it was a target rich environment as we where playing in the Brightest Day Crater. I finally desided to try out his ability and called in the All-Out Assault against four of the enemy. One of them was basing, but on his last click so I know that he would be gone for the ranged attacks. The Judge for the event EshuRoger said that I could target the ranged figures but that I could not make the Ranged attacks as I was being based at the time. To me the ability seems to trigger similar to Flurry but that you can target up to four different figures.

ALL-OUT ASSAULT: Once per game, give Iron Man/War Machine a power action that places two action tokens on them. Iron Man/War Machine possess for this action. They can make up to 4 close and/or ranged combat attacks as free actions. An opposing character may only be targeted once during this action. After resolving this action, Iron Man/War Machine are dealt 1 unavoidable damage.

FLURRY: Give this character a close combat action. After the close combat attack resolves, it may make a second close combat attack as a free action. If this character loses Flurry before it makes the second attack, it can’t make the second attack.

I didn't argue because I know that I would bring my question here to see which way it goes. I do have to agree that this is a powerful ability, but it is limited to only being able to be triggered once per game.

You could do 4 attacks to differnet figures (at range or up close as long as certain rules are abided, such as adjacency). As long as you were able to hit and KO the figure that was next to you, you would then be able to continue your other attacks (range) on the other figures. If you missed the figure and they weren't KO'd, then you would not be able to attack the other figures with range.
Hope this explanation helps.

I'm completely confused as to what your judges' problem was. It's clearly four separate attacks, so first you attack the basing figure, then you select your next target, and so on.