all pokemon are used and all pokemon apply to the challenge.
this means:
- if your starter faints you release him/her
- if a pokemon faints and is released you cannot go back to where you originally found it and catch it or any other pokemon again
- you only get one chance per area to catch a pokemon, if it faints then thats it, if you run out of balls, thats it
- if a pokemon you own is poisoned and faints before being healed, it is released
- you are allowed to store pokemon in pc's and can swap out if necessary( this is why it is critical to always catch the first pokemon in each area so that you have a backup supply)
- IMPORTANT: unless a legendary pokemon is the ONLY pokemon in the area, you must defeat it, no catching, no exceptions. (pokemon like ho-oh, lugia, and mewtwo, the only way you will be allowed to catch them are if you have tons of max repels and do not encounter a SINGLE pokemon along the way)