Well - I finally defeated Feeling Blue - after about 150 tries! The key to victory for me was to get the 3 AI's battle each other - while I slowly built strength. It took me 61 turns to build strength! My basic strategy was as follows.

1. Take New Zeland and Tazmainia as quickly as you can. Afterwards - do not defend either.
2. Get moving North and East quickly in West Austrialia. (Start this in Turn 2).
3. Get the Western South Austrailia Bonus by Turn 6 = 4 armies.
4. Get to Wyndam by turn 8. Get the East Western Australia bonus, and the North Western Australia bonus along the way = 9 armies.

After you capture Wyndam - you must do 4 things - at the same time!

1. Fortify Wyndam from recapture.
2. Capture East Timor and fortify from recapture. This prevents an AI from getting the Indonesia Bonus = crucial!
3. Obtain the South Western and West Western Australia Bonus = 10 Armies.
4. Stop pushing east = Go no further than slightly past Western South Australia bonus = pushs the AI's to fight each other.

After you do all this - push slowly to the east - eventally capturing all of Australia = 33 Armies. From there it's all mop up.

After you do that - have a beer - you deserve it!