I will attempt to handle combat this way. It may get modified if we find it unworkable or not very good
In a surprise situation, the surprising party gets a free turn
NORMAL ORDER OF OPERATIONS
1) Declare intentions (DM secretly declares Monster intentions)
2) Spell casting and missile fire begins (both sides)
3) Simultaneous Movement
4) Spells and missiles in turn that contact is first made roll initiative: win and get shot or spell off, lose and don't. (multiple missiles/spells could be simultaneous or in initiative order?)
5a) Combat in the turn that contact is first made: longer weapons attack first, otherwise by initiavie roll (dex modifier applies).
5b) Combat in subsequene turns: shorter weapons attack first, otherwise by initiative roll (dex modifier applies).
6) Second missile fire allowed for stationary bowmen (or bow-elf even if moved).