Offering my 5 cents on the turn 1 issue.
I think the main thing is that in that first week of Barbarossa, soviet C&C as well the logistics system collapsed. The soviets simply were not ready for war on this scale. This meant that resistance was very uneven. Soviet resistance ran the gamut from heroic (Brest, the infamous KV of Rasenei), to fierce yet disorganized counterattacks (Battle of Brody) to total collapse. In the end, the German advance (as in much of the war) was due less to outfighting the soviets then to outmaneuvering them.
As such I'd suggest that that the combat capacity of soviet units be increased, and especially in the south, many of the mobile units be put on reserve mode. On the other hand, soviet rail capacity and supply net should be lowered, to reflect that the problem wasn't so much on the ground (though there were plenty of problems there) but that the Soviet infrastructure was completely and hopelessly unready for a war on this scale.
Basically, as far as the early war goes, I see both sides having distinct a-historical advantages. On the one hand, he Axis units are a little too good at fighting (at launch it was the opposite) and on the other hand the Soviets have way too much strategic flexibility and mobility, being able to move their units with too much ease. Another solution would be to set a lot of soviet units to static and then increase Soviet AP points for the first 4 or 5 turns. Or to model in the devastating impact of Axis interdiction on soviet troop movements.
Sorry for the highjack.
< Message edited by notenome -- 5/21/2012 10:05:59 PM >