For the Morthond archers that I want to make, could I include Duinhir and the hornblower as part of the 10 archers needed to produce volley fire? I presume that the banner bearer doesn't count, but can he put his banner down and then shoot? I appreciate the last point is getting a bit tricksy, but just wanted to hear other people's views.

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Sometimes you CAN be the only one in step...

You can use any 10 models with the same weapon to initiate volley fire. If you give a model a banner it automatically loses all of its other weapons, so no, you banner bearer cannot shoot - at all.

Except for Halbarad

But the hornblower and Duinhir can.

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"Leave Sauron to me."
If you're in the Raleigh, NC area, let me know.