IIRC, Form Fitting armor doesn't count toward armor rating totals for determining combat pool loss...

If so FFBA is a must-have for these purposes, since it's worn underneath your regular clothing/armor and as such is more easily concealed.

Deal with military armor? Here's my advice as a frequent user of milgrade armor, and as a GM who doesn't mind it in his games:

First, make sure the runner isn't seen in public with it. Being seen in milgrade armor is like being seen with an assault rifle in public today. Drop a Lonestar SWAT team on the runner's butt if does. Now, that's easy to say, but remember it'll probably ruin the rest of the gaming session. A GM needs some brass to use this response.

Second, when it would be appropriate, use magic. Milgrade armor does nothing against a mana bolt or power bolt. But don't trot out extra magic just because one of your runners now has milgrade armor. Use magic when it's appropriate - not every corporate facility has combat mages, nor does every Lonestar patrol car.

Third, use APDS in appropriate situations. Again, your average office security guard (i.e., overweight, underpaid rentacop) is not going to be packing a heavy pistol with APDS, or an assault rifle with APDS.

Fourth, do nothing else in response to the armor. As soon as runners get wired reflexes 2 and their first cheap AK-97 assault rifle, they're deadlier than 99% of the population. In many cases, they should already be stomping all over most of the opponents they face, unless you're only feeding them a diet of Corporate Commandos, Delta Force Soldiers, SWAT teams, Elven Cyber Ninjas, etc. When the runners meet foes who are real threat to them, the foes should be quite capable of handling milgrade armor - a good burst of APDS from an assault rifle, a high force mana bolt, a sniper with APDS on the far roof - without extra buffing.

Most players don't bother with milgrade armor in my game, even though it's available at character creation. They don't see it as fitting the character concepts or being worth the trouble (see point 1, above).

I disagree with the notion that owners of milgrade armor will become instant targets for every street punk and other runner, and thus should hang their suits up as trophies. If the word is getting out on the street that a runner has milgrade armor, it's getting to the police, too, and they should be visited by a SWAT team soon. Further, runners that thieve from other runners should have a short life expectancy. Finally, if you're going to be stealing milgrade armor from a runner, why not loot all that expensive cyberware they have, too? Since you don't see many murders just for the sake of cyberware, you can figure milgrade weapons and armor aren't getting ripped off often either.

There is. the organisation Tanamous, aided by the Dissemblers in Seattle and other gangs elsewhere. They generally do it for organs (mainly because it is beleived Ghouls run it), sometimes do it for stem cell harvest to sell on. If they do the latter, you gotta beleive they sell the other bits they can't use as well.