Okay, with the flag templates released, I've whipped up two different CSA flags. One, a simple stars and bars, and the other based on the cover of 'The Center Cannot Hold', if you've seen if you know what I mean.
I also did a quick count of the states in the AE USA and came up with 35 (I wasn't counting Sequoyah). Is this the number we're thinking of using?
Now to discuss various things. Since the game will presumably start in 1936 in this scenario as well, I think we should probably have a Spanish Civil War situation down in Mexico. If I remember correctly, and I'm open to correction here, the parts of Mexico closest to the CSA border were supported by the CSA and the more southerly ones were supported by the USA? And what were the names of each of those Mexicos?
Now, it's sort of hard to predict what Turtledove has planned for Canada, but I think that we'd be looking at a revolution event based on some event during the war to recreate an independent Canada, so we should probably have a flag for that as well. They might keep the same old red ensign, but then again, it might be something different.
The Republic of Quebec is pretty clearly a USA puppet state. I made a flag just using the Quebec provincial flag, and unless someone remembers a reference to it being different than that, this seems to be the way to go. It's sort of hard to tell from the map, but it looks like the RoQ will have two territories.
Keeping with the three possible gov't systems, I think what we have is:
USA - democracy
CSA- fascist
Northern Mexico - fascist
Southern Mexico - democratic
RoQ - democracy (puppet state)
France - fascist (at least that's where it looks like its going)
Britain - democratic (probably, even though there's a fascist movement)
Germany - semi-democratic... hard to say though, to put it in a different 'category', this might have to be the center of the 'communist' world. Not that it would be communist.. ah, you know what I mean

Russia - don't know... tsarist presumably, but not sure where that would fit into the three above... maybe 'communist' with fascist rebel provinces? It's not quite right of course, but we sort of have to twist things, right?

Japan - democratic?
China - has China even been mentioned?
Now, what about the rest of Europe? What about South America? It might be best if responders quoted the list I made above for government systems and then added their suggestions underneath.
Cheers,
Dr. Charm