BigGuns: Since the injuries aren't very serious, I'll assume a night's rest heals all of it this time.
On the hostage situation: I'm thinking -4 to ranged attacks for good cover (>50% covered), plus -6 for a called shot to avoid hitting Fong. There isn't anything in the core rules about human shields AFAIK, and it says called shot modifiers are up to the GM. I came upon the -6 doing some number crunching (I assumed an expert marksmen should get at least one hit 95% of the time).
I've kind of painted myself into a corner here with Cheng's threat. Obviously I don't want to have one NPC kill a more important NPC. On the other hand, there does need to be a real chance of Cheng carrying out his threat. I thought about requiring a composure/willpower test to shoot at Cheng (at least for Kitten--Grind has no reason to care about Fong), but I don't like to restrict PC actions like that. So I'm thinking I will leave it to the dice, and have Cheng make a willpower test to determine if he kills Fong (if you shoot at him). What do you think?