[tinkthank]

The manual on page 7 details this very exactly.
You create that game, then you send your friend his man.trn file. He plays his turn, you play yours. He always sends you a .2h file, which you stick in your MeAndSteve folder (or however you call that game). When you have played your turn too, you "host", then you send Steve his new .trn file, etc. etc.

But if your question was: how can we set up the game so that we two humans play together in league against 7 AI nations -- I dont know, I dont think that is possible. I dont think you can get the AIs to cooperate. You also cant set up victory conditions which allows a team to win.

So if the latter was your question, I am afraid this will be dissapointing.
If the former, I hope that helped; otherwise, just let us know and we can help more.