Could someone tellme if I am doing this right?
Main event, all policy's are still in efect except moscow treaty.
During diplomacy germany declares war on:
Denmark (joins west after die roll)
Norway (joins east after die roll)
Belgium (joins west after die roll)
Netherlands (joins west after die roll)
no changes yet to policy's
in operation phase all countries fall.
east invaded has not happened so axis - soviet pact is still in efect.
west invaded did happened.
So appeasement is finished and germany now invades France (in same operation phase, without having declared war during diplo phase).
I am just not sure if the appeasement and invasion of france bit is according the rules?
Appeasement and the Nazi-Soviet Pact must be ended by declaring war on that faction first. Without doing that, Axis units cannot enter a country bound by that policy. West Invaded doesn't happen when Appeasement ends - it happens when its conditions are met.
In your case, since Norway joined the Soviet faction, to fix it, you'd have to end both the Appeasement policy and the Nazi-Soviet policy - probably not the best move. The other option would be to declare war on the West first, which would end Appeasement, and then declare war on all of those countries, which would make them automatically align with the west.
I think Mark's answer is spot on, but I'll provide some rules references that may be helpful for those getting their heads around the implications of Policies and Declarations of War.
2.1.1 Active/Inactive Country
A country is considered active or inactive. An active country has joined a faction and has units in play. An inactive country is neutral, conquered, or ceded in its entirety to another country. It has no units in play.
[Implication: once a country has been rolled for, it now belongs to a faction.]
An Axis counter cannot move, retreat, trace a path, nor be placed into a Western country.
10.3.5 Nazi-Soviet Pact
An Axis counter cannot move, retreat, trace a path, nor be placed into a Soviet country.
13.3 East Invaded
This event occurs the first time either of the following happens. It can occur only one time in a scenario.
An Axis unit or marker attacks into, moves into, or is placed in Estonia, Latvia, Lithuania, or USSR; or in Poland, but only if Poland is an active Axis country.
13.8 West Invaded
This event occurs the first time either of the following happens. This event can occur only one time in a scenario.
When an Axis unit or marker attacks into, moves into, or is placed in Belgium, Netherlands, Ireland, or the Mainland Area of France or the UK.
So the only way to attack a minor without triggering full-scale war is to declare war on a faction, without triggering one of the conditional events that allow full mobilization (ie. East Invaded or West Invaded).