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France has fallen but did not go with the Vichy France option. So France is now operating out of her Africian colonies. If Paris is taken back would you be able to use Paris as a source of supply again for the French? Would the French be able to buy units again? Would Paris yield her full pp potential or would it be as if she ws a captured city? Also would it have to be a French unit takin Paris?

I think it is pretty much none of the above.  The people of France have forgotten your warriors, and as the event title says "Horrible" effects are coming down.  Get ready for some seriously negative PP levels.  Still, you are a thorn in the side of the Axis, and I hope the designers have a chance of surrender come with each "Horrible" event, as the penalties still will not convince an Allied played to give up the French Navy!
 
Chuck
 
PS : This is my opinion, and I have never had the French retake Paris.  I do have a solo game where it could happen, but I suspect the designers have not designed that circumstance in - (yet?).