My ball landed about 8 inches away from a chain link fence, which defined the boundry of the course, and had backyards on the other side. My ball was in front of a gate in the fence in a 2-3 inch depression formed by people trampling the gound going in and out of the gate. Do i lose a stroke with relief, or does the fact that it was a depression in the ground formed by foot traffic help me out? Thanks for any clarification of the rules...

My interpretation would be that since the fence defines the course boundary, you get no free relief from the fence. The "depression", if not marked as GUR, would also, therefore, not warrant free relief. Two club lengths and a one stroke penalty or try to play it as it lies. Read the definitions section for Obstructions and Out of Bounds.

I agree.