Sorry, guys, missed this.
How I have always played seems backed up by my recent search throught he scriptures:
Briefing said:
Vichy units start inactive, but the Axis may freely pass through them. The three separate Vichy formations (Metropolitan France, North Africa and Syria) are only activated by Allied units moving adjacent to, or attacking, them.
It seems also backed up by the fact that the Germans flooded French North Africa, a Vichy colony, when it was invaded by the Allies.
Therefore,
A) Axis units can stage, attack from, defend into, and generaly mill about in, the Vichy areas.
B) The Allies can, likewise, enter the Vichy areas, of course, should they move next to a Vichy unit, then they have just created some enemies.
A note ont he Levant: Currently, with the SSRs (which I detest) the Axis can get supply into the Levant without controlling Cyprus (by way of that SSR into Turkey from that Italian island). My suggestion, move a Turkish unit there to stop that. SSRs are gone in 4.0, so this won't be a problem.
All this to say, supply is extremely tenuous to the Levant. The SSRs can pretty easily be interdicted by the Allies.
5.) Finally-reference the line from the briefing "after november 40' Germans can move freely through a nuetral Rumania" --noticed It doesn't say "Axis units" may freely pass through as it does with the inactive Vichy territory. Does that mean after I invade Russia & have moved the front line border past the Rumanian frontier (w/ Rumania still being possibly nuetral)--I know I can rail & move German units through that territory to the front-but am I correct that I can't move any other elgible Axis units through such as Hungarian & Italians??
Read Germans as Axis, I have changed this in the breifing.