For those who want to figure out how to win this all on their own, I'd recommend not reading this AAR. For those who want to see what I think is a winning strategy (even if it doesn't always work!) please read through it and feel free to comment on how you think it could be done better because I certainly am not the perfect general!
Let's start off with the options screen. I am playing on 'normal' difficulty which gives the AI CAP and unit bonuses. I am leaving variable APs off and variable unit quality off. I also am playing with persistent APs which I feel for this scenario at least makes it much harder for the Germans. So that's my first tip, try playing with Classic Rules if you still find this scenario too hard.
