The game continues, now spring of 1942.
Firstly, a couple of CORE points: The UK manpower events didn't fire correctly, and when jh mentioned his manpower gains were terrible, I didn't realise how terrible until he clarified he was gaining 1 per month. We edited this in, but having neither of the 2 UK manpower events on war occour has hurt the UK immensely even with later editing to compensate for this.
Also, whilst the Japanese have DOW'd the USA, both nations refuse to be drawn into the greater war and join the Axis and Allies respectively. I DOW'd USA to fix this part, but Japan will likewise need to be edited into the war. I'm yet to see Japan refuse more than 10 requests to join the Axis at this stage of the game.
Now, onto the actual game itself...
The UK has built up from it's positions in North Africa, and aside from its possessions in Sicily, Sardinia, Crete, etc, it invaded the remaining Greek islands, and was poised to move into Greece proper. German reinforcements, whilst small, succeeded in pushing the Brits back into the sea, with no elite UK forces around to topple the Guns of Navarone, and save the isolated divisions.
In the naval war, the UK has largely dealt with the U-boat menance, mainly through the use of naval bombers. American entry into the Allies in the last couple of months will only strengthen the Allied position.
In the East, German forces drove ever deeper into the Soviet Union, instigating a rule of harshness and terror as they advanced. After several large battles in the Gomel-Kursk-Tula regions, the Soviet lines in the centre were broken, and the Axis forces able to push onwards. Around 40 divisions were pocketed in the early battles, and a further 20 or so were annihilated at Smolensk.
Further german advances in late 1941 saw a break through in the Voronezh region, which in turn led to a Soviet withdrawel in the south. Smaller forces were pocketed, and the front settled down somewhat. Recent battles in the Crimea, and Maikop regions have seen the Axis drive the Red Army back to the mountains, and then crucially, German armour succeeded in isolating Stalingrad.
Over the winter, Soviet Forces which started at 54 divisions in this one pocket were reduced through attrition to around 44. At games end, Axis forces were pushing in, close to annihilating every one of these units that has been out of supply despite the numerous red army attempts to relieve them. And so, Stalingrad appears to be the battle that decides the war, however this time the Soviets will be the ones to taste defeat.
Currently, the front line runs from Leningrad to Moscow, past Lipetsk, Saratov, and down to Maikop. The second spring and summer will surely decide the winner in what has been an epic contest of battle after battle of massed tank and infantry armies. Only in the air has the Luftwaffe been largely unchallenged, with the large but antiquated Soviet airforce suffering massive losses on a regular basis.