AD&D2e question about firing Bows when last in Initative order.

[Quench]

I have a combat set up. A fighter and a thief versus 3 xvarts. Your supposed to declare your actions before you roll initiative, so we do. We roll initiative, players roll 9, xvarts roll 7. Fighter has a longsword so his speed factor adds 5, thief is using a short bow so adds 7, xvarts have short swords so add 3.
Initiative Order and declared actions:
Xvart 1: Init: 10 Charging Fighter
Xvart 2: Init: 10 Charging Thief
Xvart 3: Init: 10 Charging Fighter
Fighter: Init: 14 Charging Xvart 1
Thief: Init: 16 fires at Xvart 2
I have 2 questions:
Since the Thief already decided that she was firing at Xvart 2, but the Xvart is now in melee range (because he acted first) how do I handle that? Does she still fire but with a penalty or can she switch to a melee weapon?
Also with the Rate of Fire being 2 shots per round, does she take the first shot before all other combatants act, or does she take the second shot at the end of the Initiative order (ie immediately after her first shot)?

[Haladir]

It's been 15 years since I played AD&D, so this is from memory...

I don't think this situation is explicitly covered by the rules, so you're going to have to make a situational table ruling.

If I were GMing in this situation, I'd let common sense dictate the outcome: If the bow-weilding PC had declared prior to combat that she had her bow in-hand, then I'd let her get her shots off while the xvarts were charging; even if she drops one, I'd still let them get their attacks in too, given their initiative order.

My old AD&D table ruling about firing bows or crossbows in melee: You can do so with a -2 penalty on the attack roll, but any successful attacks against you also automatically do the same damage to your bow.