The military part of the simulation is designed to be a hurting stalemate from the start, with no one actor able to achieve an easy victory on the battlefield. Usually it takes a day or two before they fully realize this, though--and it is not unusual to get hardliner vs softliner splits emerging early on within the government and the various insurgent groups. It is rare that an agreement is reached without some fighting during simulation week, and poorly-framed agreements usually break down anyway.
It is, of course, not intended to be a military simulation (I have lots of experience with those on the hobby side, but this is really about other issues). I sometimes have to restrain the passions of students with military experience who want me to draw up detailed tactical maps of a country that doesn't exist.
After a few days of jockeying, the government often tries to negotiate a partial peace with one of the main combatants, to allow them to concentrate on the others. It is a useful lesson in the fact that peace negotiations and agreements can be as much about gaining operational or strategic advantage as gaining peace.
On the rebel side, meanwhile, they're often trying to hold an anti-government coalition together while fundamentally mistrusting each other. It can go in very different directions at this point.
The simulation is in a vaguely African setting overall, as evident from the weak economy and military, the poor transportation system, conflict diamonds, and the limited levels of international engagement. It is not considered a US vital interest, so the Marine BLT potentially available to the US team (if it does anything at all) is usually limited to evacuations of foreign nationals or offshore backstopping of a UN or other multilateral PKO. One of the things I really have to do in the class is highlight that, in the real world, only limited numbers of forces are ever likely to be available for peace operations, only under certain conditions, and that external actors have much less leverage over civil wars than is commonly thought. They all seem to think you service guys are omnipotent
On a side note, I've run the SIM some years when the US team is all Americans, and the French team is all from France. That can be fun, as I know Tom and Stan can attest from their real adventures in central Africa!
As for broader lessons, it is largely a teaching device, intended to demonstrate things I've lectured on in the classroom during the previous 10 weeks. Usually students manage to reproduce (without any interference from me) all sort of real life problems of coordination, unintended consequences, fog of war/peace, UN Security Council paralysis, national rivalries, military vs UN vs NGO worldviews, etc.
To give one of my favourite examples: one year the UNICEF team did a ton of research, and put together a technically outstanding maternal/child health care project, complete with a family planning component. It was great work, and they managed to get enough donor funds to launch the project in several districts. They did a needs assessment, and decided to launch the project in the areas of greatest need, in the south. It all seemed routine enough, so they didn't consult very closely with the UN SRSG, who in any case was tied up in sensitive negotiations.
The main ethnic rebel group then learned that UNICEF was introducing family planning only in the south--that is, the home base of their "Zaharian" ethnic group. In a civil war that is in large parts about demographics, this was seen as highly threatening--and so the rebels started kidnapping UN staff in response to what they termed the "UN eugenics program." Of course, cynically, the fact that they had found an issue to beat the SRSG over the head with was far from inconsequential. The net result was a severely distraught UNICEF player, and a UN mediator that had to bend over backwards to calm supposed Zaharian fury.
As Rob suggests, they do after action reports/debriefs/lessons learned post-SIM. We may play around this year with embedding a social psychology experiment in part of the SIM--but I can't provide details lest I prewarn my web-browsing students
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