Hi Steve,
The base set up sounds good, but why are you continuing with the State as player fiction and only with 4 teams? Personally, I think that it is important to get at least 10-15 teams running, only 3-5 would be "States" while the rest would be non-state actors.
Do you remember a game called Kingmaker? You might get some good ideas from that one. Also, AH came out with one whose name slips my mind that was a more advanced version - multi-state, multi-faction and really nasty politics. The other thing you need is one or more really sneaky, nasty and, above all else, creative game master.
Marc
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