So, please let me know if this is correct:
The PC's enter a dungeon corridor and just around a corner, there are 6 bugbears on guard duty, expecting intruders. The party comes down the corridor not attempting to move silently, with the Dwarf clanking along like a Sherman tank. The bugbears hear and become aware. As their "surprise round" they draw weapons, move into defensive formation, etc. Now, the party turns the corner and sees them. Both sides roll for initiative. The PC Rogue beats the Bugbears on initiative. Are the Bugbears still flat-footed, since they were aware of the party and got a "surprise round" to prepare?
Or...
A Chimera is concealed in a room beyond an opening in the wall in the room the PC's are in. There is a tapestry blocking the opening, so the party does not see him. As his surprise round, he moves into the room the PC's are in, dramatically clawing the tapestry out of his way. Now the PC's roll for initiative and the Rogue beats the Chimera. Is the Chimera flat-footed until his initiative, even though he was aware of the party?
I need to know. The rules say that you are flat-footed until your first initiative in a "regular combat round." But they also specify several circumstances of when you are / are not flat-footed. These examples make it clear to me at least, that if you were aware first, then you get to act in the surprise round, as determined by the DM. Thus, you are not flat-footed after you act in the surprise round. These two interpretations conflict BADLY!!! Two of my players are on the side of the single sentence in the PHB that states the first interpretation (actions don't negate flat-footedness until the first regular combat round). Another player and I are in favor of the second interpretation (actions before the other side is aware count to avoid flat-footedness). With the first interpretation, the Rogue has become a combat machine in round 1, going master thrower and catching everything at its flat-footed AC, making it possible for the PC Fighter and Barbarian to take the opponent out almost as soon as they act.
Please help resolve this!
DM