(Apparently my B key is still sticky, so derp title!)

This is something that's been bugging me for awhile and I couldn't find it anywhere else.
When a Weirdboy rolls the power 'Eadbang he performs the power Frazzle with the 3" template centered over himself. My question here is, can the unit with the weird boy still fire and charge another unit?

Here's my two ways of thinking:
1. Since Frazzle is a psychic shooting attack that is a blast, whomever you center the hole over is your target, and thus is who you must shoot and assault.

2. Frazzle reads that you select an enemy unit and place the small blast template over them, to which it automatically hits. Since 'Eadbang makes the template go over the weirdboy, it would be akin to having a blast scatter back onto the firing unit, however his unit may still shoot and charge as normal since they picked an enemy target beforehand.

Regardless we can agree that you cannot run if this power is rolled since it is a psychic shooting attack, but which interpretation is right for assaulting and the other guns?