About the Asia connection: Yeah, I still want my European holdings to be non-overseas. I've got holdings in Anatolia which isn't overseas for me. It is connected to the middle east (which is party mine as well) - but my provinces there are counted as overseas. :/ Someone said about land connections.. I guess you meant that I need to have a land connection between the capital and the Overseas provinces?
For it to not count as overseas, it has to either have a land connection to your capital or be in the same continent as your capital. (I'm pretty sure, at least...)