I play this variant often.
1-Yes, the fortress is too powerful under the original house rules. I kept the 1-time 2 shot rule and made it a 1-1 ratio fortress-infantry in order for the infatry to defend at 3. This would mean you have to invest in multiple fotresses to get multiple infantry bonuses (but you still only get 1-time 2-shot rule)
2- Yes, a little too powerfull as well. I revised the stats to the mech infantry from the AAP40 game including the ability to attack on a 2 if you have paired infantry.
3- I allow these to move. They cannot attack, but they can create blockade scenarios for the allies; bulster German axis sea defences and be used to transport German/Italian units.
4- Yes - I play Axis Minors must always leave a unit in their home country.
5/6- This seems to balance out over the course of the game. The german sub issue creates a whole scenario the allies must contend with or risk getting the IPCs stripped via convoy takeovers. The Japan issue may not be less of an issue for me becuase I play that Japan-Russia are at war from the start (see #8)
7- I used to use the AA50 rules; then went to the AAP40 rules for China. Including Burma Road bonus and IPC collection.
8- I’ve always played where Japan-Russia are at war from the start. This is more for time management then historical accuracy. This is also an easy house rule to insert in your game.
I also prepared an updated version of the rules and setup and will be revising once AAE40 is released.
AA40P Set Up for Minor Powers v1.6 June 10.xls