After you have entered your name and have selected the ally and enemy nations, you will need to configure the ally and enemy fleets. The setup screen contains two fleet status displays. The top display shows the make-up of the ally fleet and the bottom display is that of the enemy. Also displayed is the total number of ships allowed along with the number of ships you have not yet allocated to either fleet. A dash before a ship class name in the fleet displays indicate you have not selected any ships of that class.
If you have more than one class of ship in the ally fleet you must specify the ship class of your flagship. The flagship is the type of ship you will be commanding your fleet from. The enemy does not need a specified flagship.
Once you are satisfied with the make-up of each fleet you must enter the command "Begin" to start the simulation.