The first thing I did was to ensure my meager air assets were set to "Minimize losses" and set to Interdiction missions rather than Air Superiority. The German AF just has too many planes to fight and the Interdiction mode worked out very well, never having lost a unit to Reorganizing. A few time they went to rest, but were always there for me.
The troops were set to Limit losses by game default so they were all set.
My first priority in the early turns was to get defenses set around Kasserine Pass and Bou Chebka to the immediate south. These too points are critical objectives that will cost you the game if you lose them. Also that Supply Point (SP) to the south will need capturing to start the starvation diet for the Germans as well as prevent the entry of more troops later in the scenario.
