I'm leaving Pan-American Union there because otherwise all of Africa becomes free land for Axis. I completely nerfed them entirely so the African region will have to play well in order to make any difference. For the Australian suggestion, I'm going to take it. :)
As for the countries. I was going to host mini-tournaments in order to decide who gets what country, and then 1 massive game with everyone. I was planning on announcing the details tomorrow.
Btw, this is updated to my post:
http://warlight.net/SinglePlayer.aspx?TemplateID=230279
I'll tweak some things to give the British some navy in the area.