ITALY
Italy is one of the smaller (and least expensive) nations in Austerlitz.  It shares the Italian peninsular with mainland Naples, and is sandwiched between France and Austria.  Like the other smaller nations, it has decent prospects if it has a leader capable of overcoming a modest economy and average army.   (sample GUI empire file)

Economy
The economy is limited by just a single ore mine in Europe and trade city, Rome, in Europe, although the possession of zinc mine in South America is helpful.  Italy has a fair number of food, wine and other natural resources, but with the one ore mine simply does not have the economic power to compete directly with the larger powers.  The Caribbean position can be used to effectively trade and generate goods and money.

The Army

Italy begins the game with 13 brigades in Europe, and 2 brigades in the Caribbean.  Italian troops simply are not the best, although they have better than average movement of 32.  Like some of the other medium sized nations, Guard Cavalry is available for setup in new brigades, but these are expensive and still not nearly as effective as the elite cavalry of France, Russia, Britain or Sweden.  Generally, the cavalry is poor.

The Navy

Italy starts with 17 ships of the line, including two class 4 cruisers.  This is a capable navy, and in the hands of a skilled leader can fulfill Italian ambitions in the Mediterranean and Caribbean.

Strategy

Italy's position in 1808 is difficult.  It is sandwiched by France and Austria.  North over the Alps is the Confederation of the Rhine, with similar problems.  To the south lies its twin Naples with whom it shares the peninsula - Rome and Naples are separated by only 2 coordinates.  The first task for Italy is to try to grasp the intentions of its southern neighbor.  Diplomatic silence or indifference may indicate impending war - a long, costly one if an even fight.  France and Austria will also need to be contacted - will they commit to defensive alliances, and come to your aid if attacked?  Northward Italy will typically find a sympathetic Rhine.  Even if a European war looks imminent, it may be worthwhile to use the navy and seize some extra co-ordinates in Africa or Crete.  Land is available in the Caribbean as well, but the other powers usually try to bully or severely limit Italian conquest there.   

Conclusion

Can you restore Italy to the glories of the Roman Empire?  Italy is a small country, with an average army.  But, if led by an astute diplomat and battlefield genius, Italy could be the invader instead of the invaded, and expand in Europe, securing rights to the extra ore mines it desperately needs to build its economy.  This position is for a skilled player who wants a challenge, or for a new player who wants to learn the game at a discount, even if it means fighting his first simulated battle against the Grande Armee of Imperial France.