QUOTE (Dakka Dakka @ Jul 1 2011, 12:11 PM)
The general rule is that wound modifiers apply to all tests except resistance tests, so they also apply to the initiative test, whose hits are added to the Initiative Attribute forming the Initiative Score. The section about initiative and damage tells us that the wound modifier applies to the initiative score. So the general rule reduces the dice (which is not overridden by the special rule) and the special rule reduces the score. I call that a double penalty.
I think it is indeed overridden by the special rule. It takes only a modicum of interpretation to read the first line of the passage as exclusive rather than inclusive.
QUOTE (SR4a p.163)
WOUND MODIFIERS
...
Wound modifiers are dice pool modifiers that apply to nearly all tests the injured character may attempt, except for resistance tests.
...
Emphasis mine.
From this line it can be deduced that there are exceptions to wound modifiers other than resistance tests. To be crystal clear there could have been a specific mention in the initiative section that wound penalties do not apply, but the absence of any reference to the standard rule means technically it can be taken either way.
I don't think it takes much logical reasoning to conclude that applying the wound modifiers in both ways is not what was intended, nor the optimal way to run it.