Well, I've started up a 1.8 SID game as Soviets, and I think I'd put down some notes, let you know what's going on.
Right now I'm sitting at Week 19, 1940, and the game is the least active I've yet seen. So far, the Italians have been largely defeated in Africa (only Tobruk left), the Germans have captured Mainland France (Brest and Marsailles razed, Paris captured early with 25 pop, usually germans have to bomb it down to one). Japan isn't doing nearly as well in asia as they usually do, having taken *many* turns to capture Hong Kong, and other than a few island cities and Pushing the Chinese back to the mountians, not much else has changed. There does seem to be some back and forth near Bangladesh however, with Thailand elimated (Bangkok razed) and Rangoon, Hanoi, & Nakon Ratchasima controlled by Japanese.
The AI does seem to be building somewhat more sensible forces in 1.8, with lots of transports with 6 units in them, (SS Inf, US Marines, ect...) Escorted by Bismarks, BBs, and the occasional Destroyer flotilla. Germany has worn down its forces to Me109s and about 5 other bombers, which probably explains why paris was captured with so many people. The US also managed to capture the Kurile Islands with an amphabious landing early on, which suprised me.
Other things of note: Germans have taken Copenhagen, Spain and portugal haven't been attacked by anyone, but somehow the Germans have captured Gibraltar, (amphib or moving through spain, don't quite know) Japanese have captured Davao, Fakfak, and Sarmi, but lost Sarmi soon after capture. French still control south Vietnam (Hue & Saigon). China still has three mountian cities and Kunming left. There has been relatively little city razing so far, but that might be because so little has changed hands. AI Razed cities so far: Amsterdam, Brest, Tripoli, Tekro, & Bangkok. All of the other small Europan civs are untouched. I would guess the same for S.America, haven't been watching, but nothing seems to have happened.
As for me, I captured all of Communist China within the first 10 turns or so, just barely beating Japan the Yenan, and I am 2/3 of the way through Turkey, which is a real though nut to crack with all of the new fortresses and units on mountian terrain. It's been mostly take city, heal everything, repeat. Other than that it's been almost exclusively infrestructure, with my cities producing nothing but workers for the first 7-10 turns, then moving to buildings. I now have 350 workers improving the countryside, with my cities starting to finish up factories, moving on to heavy arty when finished. After I finish with Turkey, I'll probably move onto Sweden and Norway.
So, overall, fun game so far, with the axis seeming to have some problems, especially the Japanese. I have a suspicion that the British are going to start to overpower them in SE Asia, especially once they beat the Italians in Africa.
More updates as things progress. (if you want them, of course)
Which is the list of units that each side starts with at the beginning of a scenario.
There were definitely better places to put it, but corruption/waste is not a huge issue in this scenario.
Oh well. The AI stupidity with aircrafts and ships continues - nothing anyone can do about it though. French have a lot of forces on the mainland. They keep moving almost their whole force into my territory and then out again for no apparent reason. They totally refuse to attack my cities with their infantry, which is good in a way cause they will have some defense left when I attack them. But they end up losing a few forces everytime they cross. The French are now at war with Turkey again, although usually the Italians also declare war on Turkey right after, but they haven't this time. 
The pedia I am using says they can be upgraded, but I am using one of the versions modified by other players.
