I was playing a match against my buddy, and I had recalled a method used against me the previous day against another player. Let me tell you what he did:

It was his recruiting stage, and was close to winning. He had Pyro on the table, and tapped him while recruiting causing me to take three to the head...simple enough. He then KO'd that Pyro to replace it with another Pyro and hit me for three more. And then did it ONE more time, for a total of nine right to my head.

Ok, so I know you can do this when you have say, a level seven Wolverine in your hands to replace the level three Wolvie in play.

My question is this: Are you allowed to knock out a character to replace it with a card of the same level?

Yes. The game only checks the name of the non-Army character, not the version.

It is perfectly legal and is a good strat. There was an article on metagame.com explaining how to do this with senator kelly.

Thanks guys.