I dug a 4x4 vertical shaft 30 z-levels tall. Retracting bridges are built at various levels. I thought I built the one used in this test at level 20, but it turned out to be level 19 instead. Mea culpa.
Test subjects are put into a military squad test group and assigned to a burrow waiting area that contains a room with 10 beds, a dining room, a booze stockpile, a prepared food stockpile, a barrel stockpile (because if a dwarf empties a booze barrel, he really wants to be able to put it away and you get a ton of cancellation spam if he can't get to a stockpile for it), and a refuse stockpile. This is to keep them from making friends with the research staff or test subjects in other test groups. It's bad to use test subjects with lots of friends in hazardous tests, unless all their friends are taking the same test at the same time.
When a test group has 10 members, I create a burrow on the bridge at the level from which I want them to begin their test, and schedule that squad test group to patrol that burrow. All other bridges are retracted, of course. I then waited until the entire squad is on the bridge, which involved deconstructing one bed when a squad member test subject decided it was time to sleep instead of test. Then I pulled the lever to retract the bridge and begin the test.
And yes, one of the dwarves did die during the fall. He's the one that didn't seem to hit another dwarf, so I'm guessing he hit the wall of the test chamber after falling 17 z-levels. There's a red smear there. But there's also a read smear up at level -6 where the two collided, so it doesn't necessarily prove that this one hit the wall. More testing will be needed.
Two of the dwarves also did land on other members of the test group. The landers just got stunned and walked away unscathed, while the landees took damage. This means that dropping troops onto invaders is a plausible tactic. Just make sure your drop troops don't miss.
Test group 2 is scheduled to do the full 30 z-level fall, as soon as I fill the test group.