First, can some nice Moderator move this to the AAR Forum and change the name to something more appropriate if possible? Thanks.
OK, so here we go again (if anyone is interested, sorry it's not very good, never done this before!).
We left it at the reclosing of the pocket. This was being held by two armoured division, with reinforcements on the way. However, this could not be held forever.
In the south, my other two armoured divisions retreated in the face of overwhelming Soviet firepower, rather than sacrificing valubale men and material. They moved to rejoin the main army group in Kosice.
To gain some breathing space, an offensive to widen the gap and retake Stralsund was launched on the 29th. This would allow a further offensive to retake Potsdam to be undertaken in more favourable conditions. This became more critical as Kustrin came under attack, threatening to reopen the pocket.
Kustrin Soviet counterattack:

Stralsund Offensive:
Situation August 1st, 1942. You can see the retreating Divisions in the South, with divisions moving into reinforce Kustrin and retake Stralsund. The large Soviet Prescence in the South is beginning to concern me. All future produced Divisions will be placed there. The French are making steady (but slow) progress.
The planned offensive into Potsdam goes according to plan, enabling the availble pocket for the Russians to get smaller and smaller. Surely they are doomed?
Things get worse in the South. A massive attack by the Soviets into kosice, one of my Homelands. We have no choice but to retreat.
This is the situation on August 9th. We have success in the North against the remaining pocket, and are holding our ground successfully. I've alleviated my supply situation by selling some un-needed Energy from the stockpile. This should keep me going a little longer.

However, in the South:

Things are not so good. We are retreating back to my circular fortress line developed against a possible German invasion. However, Soviet strength continues to grow despite their losses in the pocket. Current Infantry strength alone is 297 divisions, against my 29.
I fear the end may not be long.