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I just recently picked up a number of tau models via ebay (Which combined with some 'nids I got before for my brother depleted my spare cash for the time being), and am planning on getting them into something workable against both 'nids, and vanilla SM.

Currently my plan for them, which uses all the models I managed to get.

HQ:

Shas'o - 175 Points (Just hit legal limit on gear)
-Airbursting Fragmentation Projector
-Cyclic Ion Blaster
-Plasma Rifle
-H.W. Multi-Tracker
-Stimulant Injector
-H.W. Drone Controller/2 Shield Drones

Elite:
Shas'vre XV8 Crisis Suit- 109 Points
-Fusion Blaster
-Missile Pod
-Targeting Array
-H.W. Multi-Tracker
-H.W. Drone Controller/2 Shield Drones
-Bonding Knife

3 Stealth Suits - 132 Points
-Targeting Arrays x 3
-One upgraded to Team Leader w/ Bonding Knife, H.W. Target Lock, and Fusion Blaster

3 Stealth Suits - 132 Points
-Targeting Arrays x 3
-One upgraded to Team Leader w/ Bonding Knife, H.W. Target Lock, and Fusion Blaster

Troops:

Fire Warriors x 12 - 161
-One Shas'ui with Bonding Knife, D.C. (2x Gun Drones), EMP and Black Sun Filter
-All Pulse Rifles

Fire Warriors x 12 - 161
-One Shas'ui with Bonding Knife, D.C. (2x Gun Drones), and Black Sun Filter
-All Pulse Rifles

Kroot - 124
-12 x Carnivores
-1 x Shaper
-2 x Hounds

Total: 1001 points.

General idea is to probably attach the Shas'o to the stealth suits for the bonding knife from them, and to assist in general infantry killing, while getting close enough to vehicles to try and get that fusion blaster to do its job. Plasma rifle is on the Shas'o for clearing out any high armor models/units, such as termies. Considering the possibility of deep-striking the whole set in. Kroot will act as a tarpit, and potentially minor firepower as the marines/nids close in on me. I have no units capable of mass markerlights, hence the presence of targeting arrays on most units. I could potentially drop some upgrades and pick up markerlights on the firewarrior leaders, but I'm not sure how useful only two markerlights would be.

I realize I have no vehicles, and that this is a decent sized weakness, second only to the lack of markerlights.

The three models with fusion blasters are there for dealing with the vehicles the SM will bring to the table (Dreadnought, Land Raider Crusader, Land Speeder, Razorback, and Rhino are all liable to make appearances).

Fire warriors are going to be largely stationary once I get them in a good shooting spot, providing supporting fire while my stealth teams do a close-in, shoot, and back off with the assault move. I am uncertain whether the crisis suit will end up with those weapons however. I am toying with the idea of dropping the targeting array and making either his missile pods or fusion blaster twin-linked. Or just drop the missile pods altogether, and get a flamer (maybe drop T.A. for a twin-linked one?).

The 'nid player (my brother) has a large force, and can do a number of strategies/set ups in a small game like this (Do note however, I've basically helped him construct his army from the ground up, helped him with customizations and such, and have basically told him every strategy he may know in regards to his army). His choice of units looks like...

HQ:
Swarmlord
Parasite of Mortrex
Tervigon

Elite:
Zoanthrope x 2
Doom of Malan'tai

Troop:
Hormagauntx x 42
Devilgaunt x 56 or so
Genestealer x 30 or so
Ripper Swarm x 9
Warriors x 6 (I know 2 have devours, and one a barbed strangler)

Fast Attack:
Gargoyles x 10
Raveners x 3

Heavy Support:
Mawloc
Trygon Prime
Carnifex with ST/Stranglethorn Cannon
Carnifex with ST/Crushing Claws
Carnifex with 2x ST

For the Space Marine player, he is more limited in choices. He basically has a librarian, a termie squad (unsure of type), 2 tac squads, a scout squad, a chapter master, and the aforementioned vehicles, one of each. I think he might have a squad of assault marines too (the ones with jump packs?).

Should I roll with the list I made as I've constructed it? Or should I cut out units, divide up the fire warriors, reduce the overall point costs, etc.?

I think that you should reduce the points of your commander and battlesuit.

One of the major errors of almost anyone new to Tau is that they get all hyped up on upgrades for battlesuits, not that this is bad, but moderation is good. I tended towards completely overdone suits when I started as well, and my commander ranged from 150 - 200 points. If you can cut back, you usually can end up with twice as many battlesuits, maybe more, which overall will do way better than the previous one or two heavily upgraded guys.

For your commander, I would suggest going simple, Plasma Rifle/Missile Pod/Multi -Tracker. That would be 87 points. Boom, a huge chunck saved.

You crisis suit, I would do the same. Keep him at two weapon systems, and with a multi tracker.

That will probably give you the points for about two or three more battlesuits.

Then, I would also get rid of all our stealth suits. They are kind of cool, but I think it would be more cost effective ( and firepower effective) to take fire warriors in their place, and let your extra battlesuits take the heavy guns.

Also, blacksun filters fail hard. They only really work for a small handful of missions..

Actually, your HQ is 55 points off the limit - the 100 point limit is ONLY on the 'Battlesuit Wargear' section. I would take 2 HQs, Plasma/AFP and Plasma/CIB, then (if you're looking to upgrade up to fill points but still be good) take 2 Shield Drones on each, Iridium Armour and Positional Relay on the AFP one (Shas'O?), and then Stims and an Array on the other one if its a Shas'El. If you can get another couple of Crisis/a Hammerhead/more drones for the stealths, that would probably be the best improvement. You could trim the list quite a lot, to make it more efficient. Maybe consider a Plasma/Fusion Commander for added BS5 Fusion? Also remember the 'take any support system, everyone takes one' rule for stealths. Also the shaper is just not worth it, at all. Take 3 more kroot if possible!

A similar list, at say 800 points, could be:

Crisis Shas'El, Targeting Array, Plasma, CIB, Multi, 1 x Shield Drone - 115

Crisis Shas'El, Positional Relay, Plasma Rifle, AFP, Bond, 1 x Shield Drone - 125

Stealth Suit x 3, Fusion, Array, 2 x Gun Drone - 122

Stealth Suit x 3, Fusion, Array, 2 x Gun Drone - 122

Fire Warriors x 7 - 70

Fire Warriors x 7 - 70

Fire Warriors x 7 - 70

Kroot x 13, Hounds x 2 - 103

795 total

And combine the Commanders into one, awesome unit. It also multiplies how survivable they are, in terms of being a complicated unit for wound allocation. Might want to swap some missile pods in or something. Could go for a helios suit maybe?