Alright, time to share my thoughts. In no particular order....
Something has to be done about the phases, because there are too many of them. Personally I would lean towards either eliminating one of the DP bidding phases (August), and combining the other one (February) with the build phase (as in, builds and bids are submitted at the same time). This would greatly help streamline the game I think, and remove some of the clunkiness from it.
I would be in favor of adding just one IP to the base (i.e, start with two instead of one) and upping the cap to four or five instead of three. The other possibility I've thought of and discussed with ferdy (or possibly he thought of and discussed with me, I forget now), is making every center worth two IP with a cap at six. Either way, I think it needs to be marginally tweaked, not completely overhauled. I liked the start pace, and I think that we saw even from this testrun that it will pick up very, very quickly.
IP and DP need to be made clearer, perhaps with DP being labeled something different.
As far as minors being balanced go, I think it's clear that Spain and Sweden need a better check (though Jak managed to put a nice one on Jon, pun intended

), while the Balkans need one less. I would lean towards taking out Greece, and putting a minor in Holland. That would give Sweden and Spain a direct competitor, as well as giving Spain another country to worry about in Egypt (without the presence of a naval Greece, Egypt will be much stronger in the Med I would anticipate--that was part of the impetus for having Greece start with a fleet and not an army, after all!).
There needs to be a tie breaking mechanism for bidding on major powers. Preferably nothing too complicated. I'm not sure what it should be, but I know there needs to be one and I'm open to suggestions.
I think that a mechanism for major units to retreat and be rebuilt should be added. Perhaps make builds influencable by IP the same as orders are, and have the GM responsible for retreating a majors units when one is available (that's potentially dicey however, I think).
I'm sure I'll have more to say (I usually do

), but that's what I've got for now.