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So my opponent has a fleet of ships with transports and I know he has and army with it. He failed the attack on New Orleans and has retreated back to the ships. How is the army split up on the transports. The transports are at about half health and the war ships in the fleet average about 80 percent health. If I was to engage with my navy and end up sinking one transport (there are 5) would the army lose 20% of their men or does one transport fill to capacity and maybe some of the rest have nobody on them at all. How does this work?

As per observation the fleets transport capacity is treated as whole and only gets diminished, when the transports loses elements. Then a part of the expedition force gets lost, but I don't know the formula.

Anybody observed else?

As a thought experiment, let's say you have a stack on a fleet of transports that exactly holds the stack. You should not be able to take one transport away from the fleet because the stack would be split up in a way that makes no sense, like a Division would have to break up and part of it go with the transport. However, if you had one transport over and above what was needed, then you should be able to remove the extra transport. So the case would be that each transport is loaded to its max until the stack is fully loaded onto the minimum number of transports and not that each transport carries a portion of the stack.

If this is indeed the case, then the remaining depleted land force in the 5 transports may actually fit into 4 or even 3. Sinking one may not have an effect.

If transports of a fleet carrying land units are lost, so that the transport capacity of the entire fleet cannot portage all of the land unis, the excess portion of the land units will be transferred from the water location, where this situation occurs, to the closes land region.

No land units are drown nor destroyed.

This occurred to me a long time ago during testing, and Pocus confirmed that it is WAD.

How the land units are chosen I have no idea.

Don't get the idea that this is a great boon for the land units. Landing with a small, random force on an enemy coast, possibly with no supplies, with enemy fleets marauding about, spells for ... interesting times