Thanks for the continued thoughts and support.
Mr Benn... Personally I think i'd like to keep England out of the map as for the majority of the war, Britain had issues in Europe with France and Spain. Direct invasion from England didn't seem like a realistic possibility and a majority of the British fighting was on the part of the military units already there. I think jefjef has a good point in saying the superior military power is represented by the ships (wish i thought of it myself actually).
As for some of the other comments and questions, I think a rewriting of the rules and restatement should suffice. After so many updates the rules have seemed to get jumbled up. Expect a more formal update within the week with the new visual image.
As it stands at the moment, The Indian territories will start a neutral 2; showing their inactivity during the war while offering a potential alternative route between the colonies. They will also be killer neutrals.
The notion of having two groups of connected ships is a good one, I'll play around with it.
The next update should be within a few days. I think the idea of a ballot/declaration of independence is the best offered so far to give the colonies some identification. I'm thinking each colony has a capital, marked by a star troop circle. That star troop circle can attack the neutral declaration, say neutral 1. This will result in a bonus of 1 or 2, perhaps autodeploy 1 on the capital. Thoughts?