A Time of War combat is very deadly, unless you use something like the "Heroic" rules option they have in the companion book that pretty much beefs up the health, fatigue points, and speeds up the healing of the characters. There's also the Lethality reduction rules on page 192 for the regular book.
The grenade 2X/8A that you bring up would do that much damage at point of impact. Then the AP and BD as it spreads reduces by 1 until we reach 0. If there's any barriers or things in the way to take the damage, they'll eat it first.
If you have armor that's 4x in protection, in theory that should soak up the blast fairly okay.
Because the 2X isn't greater than the 4X, it won't do full damage. You reduce it by the difference.
So in this example, the 2X/8A gets knocked down by 2 because Armor is greater (4-2=2) so instead you deal 0X/6A.
Regardless of the attack’s nature or the armor’s strength, an attack’s AP and BD may not be reduced below 0
Don't get me wrong, that's still going to hurt but not a full 8 damage kind of hurt. Plus if they do have barriers between them and the grenade, the cover is going to eat the damage first and then your armor worries about what you take from that.
The 1 meter away guys would face 1X/7A damage which would be reduced to 0X/4A thanks to drop off damage and their armor (4 from Armor - 1 from the reduced damge distance means there's a result of 3 in the armor's favor. Take that 7A and reduce by 3 to get the final damage which is 4). So those folks would probably have a better day compared to the one at the point of impact.
You're still going to be dealing with Fatigue and various modifiers due to your damage taken, making sure you're no longer stunned, etc, but you'll live.
Well you'll live until the second grenade pops off.
Light Machine guns are nothing to sneeze at. 5B/3B with the burst, yeah they're going to eat through most commercial and civilian grade barriers given how BAR rates the exterior of a house somewhere in the 4 region.
Now the thing is, sure you can cut through a wall, but remember that you cut through a wall.
Have fun with it, someone puts that much damage in a building, maybe that's a load bearing wall and now this crazy gunner has to deal with a room partially collapsing.