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Rules Upgrade
The following changes convert the First Edition to Second Edition rules:

Page 6, VI. Reinforcements, D. If the location where the reinforcement units are to enter the game is occupied or completely surrounded by enemy units, the owning player must place them in any adjacent land hex free of enemy units.  If and only if, all such hexes are enemy occupied, the owning player has the choice of placing the reinforcements in any one of those occupied, adjacent land hexes.  In this case, they may not move during the turn of placement on the mapboard.

Page 10, IV. B. Fortifications, 1.g. When enemy units are both inside and outside a Fort, they must be attacked separately.  All enemy units outside must be eliminated before units inside may be attacked.  Both groups may be attacked consecutively in the same turn.  Casualty results against units outside the Fort do not affect units inside.

Page 10, IV. B. Fortifications, 1.j. Casualties against units in Forts are evaluated normally.

Page 13, II. A. Bateaus as Transport, 11.f.  Bateaus may not enter hexsides containing any other type of enemy naval units (BF or TR).

Page 17, VII. B. Continental Army Winter Reduction, 4.  Continental Army Strength Points are automatically reduced by 75% in Canada, the West Indies, and at sea.

Page 18, VIII..C. Deployment.  

1.  French land forces may operate independently of the naval fleets transporting them.

2.  If due to combat, ONE OR MORE French Battle Fleets are ever sunk, ALL French land forces must be withdrawn from North America and removed to the West Indies.  The remaining Battle Fleets must attempt to embark French land forces by the most direct route and manner possible.  Failure to move in the most direct and expedient manner results in the immediate elimination of all French land and naval forces.  The most direct route is that route which requires the fewest turns from embarkation to arrival in the West Indies box of the OFF Board Movement (OBM) Chart (see Seapower rules).

3.  French land forces are provided with Supply units as part of their order-of-battle.  When engaged in combat, American and French supply sources may be used interchangeably.

4.  Whenever a French Fleet begins its turn in an OBM Chart (see ‘Seapower’ Section) transitional box marked ‘FR’, it may embark one supply unit (if it is not already loaded to capacity) if there is a French Supply unit available.  It may not move in the turn in which it embarks the Supply unit.  ONLY French Supply units not already on the mapboard may be embarked.

5.  Additionally, upon French intervention, one French Supply unit is placed in the French ‘West Indies’ box.  It may be embarked immediately or held in reserve.
Page 20, IX. C. Transporting Land Units by Sea, 4.e.  All naval units may act as ferries for land units across class 2 and 3 river and coastal hexsides.

Page 20, IX. D. Combat, 3.e.  Naval units may not attack Bateaus, or vice versa.

Page 22, IV. VARIABLE TRANSPORT CAPACITIES.  Add the following note below the transport capacity costs table:
NOTE: Under this system, allow French Fleets to be overloaded on their initial entry into the game until they enter a friendly port at which time they must debark units to conform to their maximum optional capacities.

Page 22, VII. SUPERIOR BRITISH FIRE DISCIPLINE.  Deleted in its entirety.

These Questions and Answers are found on page 31 of the 2nd Edition Rules:

Q.  The rules state that if one or more French Battle Fleets are ever sunk, the rest of the French forces must be withdrawn to the West Indies.  What happens if all three French BF’s are sunk?  Are all French forces eliminated?
A.  Yes.  In this case, they would be eliminated at the end of the current player-segment.  Note that if the French VF unit was not available, all French SP’s would be eliminated, as if all French naval forces were sunk.

Q.  Can British fleets control ports?
A.  No. Control is defined as occupying with at least one CSP of British Regular Infantry.

Q.  If all friendly land units are eliminated in combat in a Port hex, are the friendly fleet units in that port destroyed, captured, or unaffected?
A.  They are unaffected as it is assumed they would move out to sea.

Q.  When attacking enemy units in a Fort and outside of it in a multiple attack, are Tactical Cards used?
A.  Yes.  Note, however, that tactical cards are not used in subsequent multiple combats after all of the units outside the Fort are eliminated.

Q.  Can a magazine be used to construct a fort as long as 1 CA/BR and 1/A are present?
A.  Yes, but the magazine counter is removed (i.e., reduced to supply unit status).

Q.  Can units move into and out of besieged Fort hexes adjacent to waterways by using Bateaux?
A.  Only if the Fort is located adjacent to a class 3 river/lake hexside.

Q.  In regards to At Start positioning and placement of reinforcements, must all scheduled Strength Points be placed on one hex when a “within two hexes of . . .” or “on, or within on hex of . . .” is indicated?
A.  Yes, units are placed on one hex, but the above wordings give a certain amount of latitude as to which hex it is.

Q.  In regards to Bateaux and/or river movement on the St. Lawrence River, may Bateaux move down the river and into Lake Ontario through the extreme top hexsides at FFF and HHH?
A.  Yes, they are playable hexsides for river movement as Class 3 lake hexsides.

Q.  If a British unit expends six movement points moving adjacent to a class 1 river and attempts to Force March, does it roll on the “1" column (because it has one MP remaining) or on the “2" column (because it cost 2 MP to enter the adjacent hex from across the river)?
A.  It must roll on the “2" column.  Any remaining MP’s that are not expended in regular movement are lost when attempting a Forced March.

Q.  If there are no British strength points in Halifax, may British reinforcements and replacements appear there?
A.  No.

Q.  In the CSG may American replacements be placed ON uncontrolled Strategic Towns?
A.  Yes, in general any reference to “within x number of hexes” of a certain location means all hexes within that radius.

Q.  In the CSG may British reinforcements be brought on within a fort on a Port hex if that fort has American units on top of it?
A.  Yes.  See CSG Rules IIIA2b and IIID3c.

Q.  May Bateaux pass by a fort containing a supplied artillery unit if no units are outside the fort?
A.  Yes.  Only British transports on class 2 rivers are required to stop for supplied artillery units in forts.

Q.  In the CSG may troops embark/disembark in a fortified port hex, if that port hex is besieged without having to stop outside the fort?
A.  Yes.  Note, however, they must pay the extra 5 MP cost for embarking/disembarking in an enemy occupied hex.

Q.  If the British control all Strategic Towns in New England, but not Montreal and/or Quebec, the area is considered uncontrolled.  Question: Where are CA and RM replacements placed?
A.  Within one hex of any Strategic Town hex.

Q.  If the French must withdraw their land forces due to French fleets being sunk, what happens to supply units and artillery units used to build forts and magazines?
A.  Forts, supply units, and magazines remain, but all French strength points and artillery units must be withdrawn.

Q.  The Br/MVC state that in 1777 control of all Strategic Towns in an Area is a possible MVC and, in 1779, a necessary one.  In New England and the Middle States, control of all Strategic Towns in the area doesn’t necessarily imply control of the area (because of Montreal and Quebec).  Question: Is control of these two Canadian towns a necessary condition for the MVC?  Also, by the same token, is control of these two towns considered for CA Winter Reduction purposes?
A.  In regards to Minimum Victory Conditions, the British player still controls Strategic Towns, but could NOT claim credit for control of an area.  For example, in 1777 New England and Middle States Strategic Towns could be used to fulfill the ten Strategic Towns requirement even if Montreal was un-controlled, but the Middle States Area could not be used to fulfill the requirement.  In regards to Winter Reduction, Continental Army strength points would only be reduced by 50% (instead of 75%) if all Strategic Towns were controlled, but Montreal or Quebec was not (as in case “C” or “E” on the Area Status Chart.)

Q.  Boston and Montreal are entrenched at the start of the CSG.  Assuming that the converse of the Entrenchment rules are true and no Fort can be built on top of Entrenchments (Yes), how do I construct the fort, as long as I have the necessary units?
A.  Build the Fort, removing 1 CA/BR, 1/A, 1/S, and the entrenchment counter.

Q.  If “change” cannot be made due to lack of appropriate smaller denomination counters not in play, is the entire force (or at least a larger part of it than called for by losses) eliminated?
A.  Yes.

Q.  What is the movement cost to debark units from a naval unit and embark different units onto it in the same turn and in the same port hex?  If enemy units occupy the hex?
A.  It would cost 10 MP for the naval unit (5 for embarkation, 5 for debarkation) in a non-enemy occupied hex, and 20 MP (10 for embarkation, 10 for debarkation) in an enemy occupied hex.

Q.  Are CA units in Canada considered to be in the Middle States or New England Areas for the purpose of determining Area Status?
A.  They are considered to be in Canada, and therefore do not affect the status of either area.

Q.  What is the movement point cost for Cooper’s Ferry (RR33-RR34) across the class 3 river?
A.  It would cost two additional movement points, same as class 2 river.