Wound allocation?

With wound allocation, especially in hand to hand, I got into a discussion with a guy at the local the other day. From reading the book, I was of the opinion that you allocate wounds at the end of each Initiative based round of hand to hand, for example, work out wounds and take saves after all guys with I=5 have fought. Is this correct?

Also, he was of the opinion that you could allocate wounds from specialist weapons such as power weapons separate to the wounds from regular cc weapons, so in the example, I'd caused 4 wounds to two opponenets, one of which was a power weapon wound. He wanted to allocate the power weapon wound to one model (essentially killing it outright), then allocate one wound to the same guy, one wound to the other guy, and then a third wound on the guy with the power weapon wound because he thought that you could then place the cc weapon wounds alternately. This would have been 3 wounds to 1 for his two guys. I was pretty sure that in those circumstances you had to do it evenly so there would be 2 wounds on each. I let him have it for arguments sake, but wanted to find out what people think the rules are. I looked it up in the book after the game and on my reading, I'm still sure that my opinion was right, but I'd also be happy to be told differently if someone could help me understand how I've got the wrong impression.

Please help me with this one. Cheers