Holy cow, that sounds hard. Keep us updated! What enemies have you come up against so far?
Update: I just aborted a terror mission. In Asia, so China left and there's a total of 6 panic gain not counting them. Yeah.
Basically, my three best soldiers were in the original round of psi testing, and those that remained were mostly using conventional weapons (because I only upgraded rifles, and the squad was mostly heavies and snipers). This... made less a of a difference than you might expect.
First turn, the sniper grapples onto the roof of a nearby building, then throws a motion sensor. While throwing the sensor, he takes a step forward... putting him in the sight line of a group of Cryssalids, one of which leaps onto the roof next to him. Our Heavy Major fires two rounds of bullet swarm, missing each, so we rocket it and grapple an assault onto the roof to plasma its face. By the end of next turn, two more cryssalids groups have been revealed. We do a fairly mediocre job fighting them, and then all hell breaks lose.
Two cryssalids charge the squad, severely wounding one of our assaults on the roof and killing a squaddie one the ground. That squaddie was the one who made a giant hole in the building we're on top of with a rocket. Out of that hole emerges six more cryssalids (!!!). Then three more reveal themselves in the distance, and two more rush forward to get into stabbing position. So our situation: the sniper can see seven enemies, and there are probably at least five cryssalids we can't see. Our bullet swarm heavy is facing down two weakened cryssalids, but is out of ammo. Our assault on the roof has 1 health left and is directly next to 2 cryssalids, which he probably won't be able to see if he gets off the roof. The squad isn't our best, but it contains three very valuable soldiers (including our only squad sight sniper!). I decided to make the hard choice and leave the civilians to their fate. This is probably the first time I've felt a nation was justified leaving the council.
I'm pretty proud that I got out of that with nothing but a squaddie lost. This was actually really fun, though I might be screwed at this point. I now face the sadistic choice of getting the engineers I need to beat the game (I don't gain any engineers monthly, so I need exactly one abduction reward of them) or not rescuing India from abductions and losing another nation. Any ideas?