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Completed game playing CSA with a loss - so theUnion AI must be great! (note i play fast - like speed chess and try to make real moves rather than gamey moves)
1. CSA generally beat off union and advanced up to 1863 in virginia and i established a good defense in nashville. . then something strange happened - in june the union right in N. Virginia gapped so i charged thru on a gettysburg type attack. The AI responded and held Gettysburg and quickly cut me off. Lee trapped and killed. was able to reestablish defense.
The question is did the AI "do this on purpose?" ie hard wired in the replicate Gettysburg?
what ever made for good game.
2. after that the AI in 64 and 65 did not go after Richmond! I had plenty of build points and reinforced.
3. AI did a good job breaking me in Tennessee and advanced and took atlanta right on schedule
4. AI did a good job of taking ports - including savannah. there was no sherman march maybe because of that
5. I defended Arkansas but again got flanked again a good job by ai.
6. held new orleans with 3 ship units plus brigade - ai never made attempt to attack with land units. ai did take mobile Pensacola and others.
did not play diplomatic game since didnt want intervention so no comments here. do not quite understand all the mexico options
Upshot for me (as sloppy player) AI did very well especially the critical 1863 events. game is good buy for single players!

Re Mexico, there's no "options" you need to worry about. All that happens is:
If and only if France comes in on the Confederate side, Mexico will come in on the Union side, and the Mexican Empire will come in on the Confederate side.
The borders between Mexico and the Mexican Empire will change periodically to reflect the current state of the war there, but this will have no gameplay impact unless France enters. If France does enter, all it does is determine where each faction's units deploy (and how many they receive).

If France doesn't enter the war, this can be completely ignored.

- BNC