Ok, ok. Since you *promise* to RTFM tonight, I'll answer your questions.

Can a squadron of aircraft be divided up into two or more smaller units?
No. But a Regiment of troops can be split up into smaller groups, simply by not using enough transports to get the whole regiment(or whatever size unit) to it's destination. For instance, let's say that I want a small unit to garrison Woodlark Island. I could select the 144th Regiment for loading onto transports. The "load cost" to load the entire division onto transports is something like 6995. Now, if I formed a transport TF(task force) with only 3000 load points, then only about half of the regiment is going to get transported to Woodlark Island.
Supplies...I assume they are totally generic?
Yes, they are generic. Supplies are the essential element of the game. In fact, this game revolves around supply. You will not win this game without being a logistics guru. Woe be to the commander who does not bring enough supplies to battle.
When you create a transport or fast transport TF, you can then select to "load troops" or "load only troops". The difference is, that the "load troops" option means that supplies will be loaded onto the transports if there is room available after all the troops are loaded on the ships. Whereas "load only troops" means that only troops will be loaded, and no supplies will be loaded. Typically, you would use the "load only troops" option when you are in a hurry, and can't wait the extra time for the supplies to get loaded.
Search function: The aircraft search function appears to be totally computer controlled with the exception of being able to give percentages assigned? Does the player not have to assign search quadrants etc?
You are correct. You only assign the squad of aircraft to a mission, and a percentage of the squad that will attempt to fulfill that mission. You can't select a scope or sector for your search aircraft to search. They use a 360 degree arc by default.
This game is unusual in that in most ways, you don't have tactical control of your aircraft. For example, you can't target a specific enemy TF for you aircraft to attack. You have to hope that the local AI commander on the scene is smart enough to pick the most important target to attack. On the other hand, you *can* select which enemy port or airfield that your bombers attack. This inconsistency is a little frustrating at times, but was made as a design decision by the developers.
One thing to remember is that your pilots fatigue and morale are critical to how they perform in battle. Also, the commander you choose to lead TF's is extremely important to the TF's performance.
Repeat this to yourself over and over until it is ingrained in your thinking: Supplies, Fatigue, Morale, Leadership, Support.
Supplies: Without ample supplies, your forces cannot do well in battle.
Fatigue: Tired pilots and troops fight poorly.
Morale: Low morale is bad, high morale is good.
Leadership: Can make the difference between a successful mission for a TF, or a disaster.
Support: All ground units and air units need an adequate amount of support(HQ units for troops, Base Forces for air units) for them to perform well in battle. Troops and air units with inadequate support will do poorly.
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