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also, ship battles - as far as retreat goes, works pretty much exactly like land battles - once morale runs out, they retreat.
My admirals counted against my max in mil points. As soon as one died the overage in mil points was reduced by one. So, they appear to use mil points.
So basically generals cost milpo and admilars cost diplo to recruite however they both cost mil points to support.
The problem I have now is I am at war with france spain and portugal. They have a fleet around england which is messing up my trade but I can't catch it. It just does laps around Britain. So the only thing I can do is have two giant navies I guess. I hate the "wack-a-mole" feeling you get in this game sometimes.