Phalanxes definitely require special handling. They are awesome when set, and someone attacks from straight ahead (although I have vivid memorys of a cataphract unit marching straight through my set phalanx like they were butter

).
The problems are:
1) they turn *very* slowly, thus require considerable advance warning (this is their main weakness, as lone phalanxes are very easy to outflank and kill)
2) Ordering them to do anything other than stand and fight will disrupt their formation and make them ineffective. And the AI always seem to attack when my guys are milling around after a misunderstood order or ill-timed formation change
3) They move to one side during combat. I'm guessing this is a historical tactic (maybe so that 2 phalanxes can try to "flank" the other, but this requires a formation rotation when you reach the end of the enemy formation, which the RTW phalanxes don't do).
4) The AI doesn't seem to like turning off Phalanx mode. This could have something to do with issue #1, making it simpler to leave Phalanx mode on for the AI. I, personally, prefer to turn Phalanx mode off until I need it, this allows them much more maneuverability.
#3 is the most annoying, especially in tight streets. Does anyone know how to keep them from sliding sideways? Most situations I do not want them to do this. Now I deliberately position them off-center so that their sideways movement will keep the most points on target for the longest period of time. Nothing is more annoying than a crucial Phalanx sliding out of position when defending a gate or street.
However, when set, and when the enemy comes towards you, they are awesome to watch. Cavalry units melt when charging the points (other than the really powerful cavalry), and very little can take a Phalanx head on.
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