The following rules work best with modest forces, say 100-250 points per side. Such forces should include very few, if any, magic items or Wizards (who should be limited to Level 1). You should choose one character from your army list to act as leader. A Hero level character will make a fine leader for the skirmish force and rules for leaders are explained below. Otherwise, feel free to choose any troops that suit the scenario you're playing, ignoring the limitations of core, special and rare units.
The biggest difference between Warhammer and the Warhammer skirmish game is that in a skirmish game each model forms a unit on its own, rather than several models being formed into units in ranks.