@onetthome:
My brother and I were playing europe 1940, I took out France first round with Germany and Italy first round before France could move. 2nd round I took out London with 3 transports and the Sh*# ton of bombers I started with.
what is Britain supposed to do?
If Germany purchases transports the first turn, the UK should build nothing by infantry for the first turn.
After making Operation Sea Lion as costly as possible (it will ALWAYS be possible for Germany to perform Sealion, but every turn later is a worse option), you need to position Russia to handle Germany and slow them down (especially now that they lost precious air units and ground fodder). If the US is forcing Germany to build in the UK to protect London, then Russia has a little more parity with what Germany and Italy can field, especially since the US can start setting up to take Africa back.
Also, if you use the Game designer endorsed Alpha 2 rules (which are a balance adjustment and eventually will lead to a revised setup/rule set), you’ll find that tweaks have been added to allows the US to declare war once London falls (among many many many other things that make the UK naval losses on G1 less extensive).