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i can not find any mention in the documation about the factory upgrade path for the Hudson II. the documention does mention a plane upgade from Hudson I to Beaufort V. anyone know the answer?

In Version 3.2, the Hudson I has been replaced by the Hudson II. However, the documentation has not been changed to reflect this. (There is a similar problem between the P-38F and P-38G.)

Note that the Hudson is considered a "Commonwealth" aircraft, and is therefore given a manufacturing cost of 14, greater than a B-17! This in spite of the fact that it was built in the U.S., as the initial factory setup shows.

yes, but should I change the factory to Beaufort V, since that is the upgade path for airgroups flying that aircraft?

Ordinarily, yes, but there are a number of factors that make it a judgement call. First, some sets of "House Rules" say that U.S. factories may not produce Commonwealth aircraft, and vice versa. Even if that's not a problem, the Hudson II has one powerful advantage over the Beaufort V that may make it not worth upgrading: the Hudson has a range of 5, while the Beaufort can only do 3 hexes. However, the Beaufort attacks ships with torpedoes, both more deadly and also meaning it can attack without being set to the Naval Interdiction mission. My personal choice has been to keep the U.S. factory producing Hudsons while the Australian and British factories make Beauforts.

Then when the Wellington III comes along, time for some more head-scratching...

My three (one ex dutch) Hudson groups are now 80+ experience in ealry 1943 (game vs LST) and as he will testify are red hot at sinking IJN. 5 range is a joy.

The Hudson (plane built by Lookheed) got a big makeover into the
PV-1 Ventura (USAAF B-34 - don't believe they ever did much with it). Anyway the PV-1 was a "hot" aircraft meaning it was fast - the over 300mph once the bombs were gone - and a bit unforgiving of pilot error in the landing pattern. In addition to much more powerful engines the later versions of the plane were modified to carry 5 x .50 cal MGs in the nose (plus 2 x .50s in a top turret and 2 x .50s in a ventral tunnel). They carried 2000 lbs of bombs and/or later 8 x 5" rockets on wing rails. They were know to outrun A6Ms and in at least one instance a PV-1 attacked a pair of Oscars downing one and chasing the other home. About 3 - 4 USN groups served in the Pacific: in the latter part of the Solomons Campaign, New Guinea, Central Pacific, Philippines, and Aleutians.
They performed naval interdiction, general bombing, ASW/general patrol
and at least 2 squadrons were used as nightfighters in late 43-early 44.
All the RNZAF squadrons (except one) re-equipped with PV-1s. At least some Aussie squadrons did too. There was a second variant PV-2 Harpoon that I believe sacrificed some speed for endurance but was otherwise very similar.