I think this question has been left unanswered as it seems to be "unanswerable" without a Q & A sent to BFP. Still, not yet having played my ITR-2 scenarios (been loving PiF, however!), you gave me a good opportunity to look this one over! Here's my two-cents:
Strictly speaking, I see no reason to apply Street Fighting rules as neither the ASL RB prohibits it and the SSR doesn't call for it. That said, the fact that SSR1
does grant Rout, Rally and Ambush terrain status upon all rubble makes it seem like an oversight. Perhaps a question should be sent to BFP. Their published Errata shows no change to this scenario.
Incidentally, RB rule RB8 is the eighth special rule for all scenarios:
RB8. [All] Rubble is treated as a building for Ambush (A11.4) and Street Fighting (A11.8) purposes.
VOTG SSR8 confers similar status to
stone rubble only:
VOTG8. RUBBLE: Stone rubble is treated as a building for Rout (A10.5), Rally (A10.61), Ambush (A11.4) and Street Fighting (A11.8) purposes.
Chances are, you and your opponent have already made up your minds about how to play this one. For what it's worth, I would submit a question, but in the meantime allow Street Fighting as the SSR allows everything else (seems odd to allow Rout, Rally, Ambush, but
not SF).
As for your other question, I can see both possibilities. However, it seems more interesting to allow the Russians to place the rubble anywhere on the map. As my argument, I would say that the rubble counters were not put in his OoB section of the scenario card, and that the SSR states that he can "
place <= two Rubble counters" not that he can "
setup" the same.
For the record, how'd you guys play it?