Well, it just goes to show that you can pass these tests without 'understanding' anything! Let's see just how much Midland Maniac has 'misunderstood'...
1. There is no minimum or maximum distance applied to the first leg of the cross-country element of the CPL Skill Test.
2. The turning point does not have to be a small town or airfield and certainly does not have to be difficult to find. However, it is true to say that some examiners have a kind of inferiority complex which causes them to make life more difficult for the candidate than it should be, presumably to prove their own omnipitence.
3. It is not necessary to regain track in the event of a track error. It is, however, necessary to reach and identify the planned turning point.
4. There is no maximum or minimum distance applied to the diversion.
5. Fixing is not restricted to VOR/DME or 'VHF pos fixing' (whatever that is). You may fix your position, at any time after the first turning point, by any combination of VDF, VOR, DME or ADF. Current CAA guidance is that GPS should not be used as a primary navigation aid.
6. If you have been fixing your position accurately while the screens are up, it will not be necessary to take an academic fix when they are taken down.
Rather than accept the (at best) suspect advice available here, you would be well advised to download Standards Document 3 (Notes for the Guidance of Applicants Taking the CPL Skill Test (Aeroplanes)) from the FCL website. Should your examiner stray outside the provisions of that document, you have a case for appeal under Regulation 6(5) of the Civil Aviation Regulations.