I think you are rather well, vandev. Much depends on the summer and autumn fighting whether you get behind or ahead of the loss suffered/losses inflicted curve, and whether the Soviet Winter offensive is brutal (likely followed by a summer seeing it grow beyond ~7M), "normal" (not compared to what we know it was, more in game terms), or "luke-warm" (basically the Barbarossa losses are pretty much crippling the Reds already).
Lines are not too bad, but panzers have been fighting alot and more will need to be committed to stabilze the front.
I'd to try to get the mobile formations into adjacent >=4 towns to reduce attrition and safe morale. You can employ the reserve mode, and perhaps even assign a number of them to Army level to increase their reserve employment "range". That way they won't suffer badly if employed in a lost fight, but can cause your opponent good head-aches with a lucky roll.
Some people even transfer some 10-20 of their best mobile formations (plus about as many of their highest morale infantry) back to Poland for a winter refit, knowing they'll have to give ground more readily and keep disengaging quicker than the pursuer follows. I consider this the best thing to do given the blizzard rules, and also given the hindsight that winterization ain't, but 42 with need for a good fist is. Of course this would never ever have been done historically, but in game terms it's probably just street-smart to save your best units for the next spring instead of letting them be worn down to hold some useless hexes you'll take back anyway much easier with intact offensive capability.
A good scenario to test blizzard rules and tactics is actually the small "Demyansk" scenario -- short but tough. Unfortunately even against Soviet AI the blizzard rules are so severely overdone it seems that the Demyansk pocket never holds more than 1, at most two turns at "NORMAL". To somewhat "recreate" the pocket holding out until spring relieve, you do have to tune down the "morale" difficulty setting to 50 for the Soviet (logistics 50% for both sides). Trying almost a dozen times, this gives about a 80-90% chance that the pocket actually survives and recreates the swaying of the front line. 50% of course means negating the blizzard penalty (just as there should be none, just logistics failing...). It kind of shows where the combination of "isolation rule" and "blizzard rule" twists the game away from what it ought to be. Interestingly, even if you units are not able to defend successfully but retreat when attacked, you can still counterattack quite successfully. Unfortunately this game favors the offensive/phasing player, just as plenty other have observed already.
Since there is no way to fine tune the blizzard penalties and logistics factors with the editor, I have started to play the GC with two sets of difficulty settings in order to retain a challenging AI, but also keep more in line with historical capabilities: morale 119% for AI except Soviet AI during 12/41-02/42, then 40%. Logistics both sides to 50%. That seems to put the breaks on my own progress, and make it seem more in line, plus it doesn't turn the Reds into supermen in blizzard as Pelton likes to call them. That way you can really fight it out without getting whole corps encircled and surrendered.
< Message edited by janh -- 3/29/2013 10:28:38 PM >