We in the school are also recieving conflicting information. On the one hand yes, the administration says it is pass/fail for the first two years. On the other hand we do have an AOA chapter which is based almost entirelyy on your grades, and also our dean say that if you are in either of the top two quartiles that your quartile goes in your Dean's letter. Which means he is somehow averaging together your 'grades', which you're not supposed to be getting. We have no idea how the different courses are weighted, or if any subjective criteria are used in assigning your class rank.
We are sure that the grades are not divided up into categories. There are no Honors or High Passes that you can miss by just one exam question. However they're doing this, they're using your percentile grades and letter grades with arbitrary cutoffs.