Is this correct?

Bats and GA have a 12 with a 10 range and . Does this mean, all things being equal, they can shoot target X for two and target Y for one then using the Duo ability, they shoot target X for one and target Z for one all in the same turn.
Or do they have to hit target X and Y on the second attack? Or can they only attack target X, in which case why the two bolts?

Also, I have read the Fantastic Four Rulebook on this link, is there another place to go to find more rules? If you have a source can you link it for me I feel like there is more written out there I need to read.

When using Duo Attack, you cannot multi-target.

The duo ability states that it must target a single character. Unless the figure's got a special ability that lets it multi target with Duo (Green Arrow and Green Lantern) its a one target attack.

As far as the two bolts, they've got incap, right? That doesn't work with Duo.

To confirm what lancelot and MopedKid86 said :

"Duo Attack
Give this character a power action to make a duo attack. This character possesses for this action. It makes a close or ranged combat attack as a free action. After the attack resolves, it may make an additional close or ranged combat attack as a free action with its damage value modified by -1 to a minimum of 1. If this character is defeated or loses Duo Attack as a result of the first attack, the second attack is not made."
(from the player's guide)

This page has all the rules document you need (that is current rulebook, PAC and player's guide).

Can you have more than one Duo character on your team?

Sure. You can play two "Batman and Green Arrow" in your team if you wish.

Sure. Is there any reason you wouldn't be able to?

The ones that you want to use go over the point cost for the tournament.=P