Using Version 1.04 with Allies at +2 and Axis at Beginner, with Russia neutral and USA historical, I took Poland, Denmark, France, Greece, and England. Spain & Turkey joined on to the cause. I then attacked and beat the USSR.
While all this was going on, all the USA could do was to launch transports to the same old hex where the same old sub sunk it each time.
I thought the AI for the Allies was supposed to be better with 1.04