On scale the recommended one is given in section 2.0. I would recommend the 1 foot to 100 yards scale. A few of the tables might need adjustment such as vehicle movement which is set at 1 yard = 100 yards so cut those by 1/3.

As far as using individual figures I suggest the following:

The rules were set up to use stands of several figures but, I see no problem with you just spreading individual figures evenly across the frontage you want per section 12.3 Unit Boundaries. The intent was to use the stands to mark the extermities of the unit's position. With individual figures you can just fill the gaps so long as the whole frontage meets this section's requirements.
The stand size was chosen on the basis of having troops closely grouped. This is not normally the case but it does occur. If you go with the 1 foot = 100 yard scale the stands should be 3/4" x 3/4 or so in size. The choice is yours to make. Either way it should not greatly effect the game mechanics.

Oh, try to keep the morale and initiave of everybody's troops reasonable. There is a tendenancy for it to creep upward. The majority of the units should have morales and initiatives of 6 or 7 at most with regular troops.

One of my own running units in games here has been Feldwebel Porsche and his two heavy machinegun teams. He has survived countless games and become truly fearsome. Last game he slaughtered most of a US platoon in less than 3 minutes.

Or, get someone to play a JadgTiger with a green crew with so-so morale. It is humorous to watch the Shermans defeat it by morale rather than penetration.

Just some suggestions.