First of all thanks for your responses, some useful stuff mentioned. Now, to be a little more detailed to the situation, year is 1985, I have elements of a tank division namely 4 tank battalions, a motorised rifle battalion, an artillery regiment, some excellent SAMs (but no Shilkas damnit), company sized engineer elements and reconnaisanse company.Tanks range from T64As to T72Bs. Fortunately the Americans have only the 105mm version of M1, and as Mobhack said M60s are pushovers (but they have amazing spotting abilities). Only the T64A has any kind of trouble against the 105mm gun, the rest of the tanks can absorb lots of hits by that weapon. The real pain in the a** are the Bradleys with their TOWs and the M109s with their cluster munitions. My artillery on the other hand is just a lot of 152mmm off map howitzers and lots of on map self propelled Gvozdikas with no CM of my own. No Uragans, no burratinos, no MSTAs none of the Soviet artillery that can deal with armor. The Infantry approach has the problem that my infantry formation is relatively small (1 battalion compared to 4 tank battalions) and I want to use it on the town that has 80% of the flags and I know that the hills that have US armor have also MG positions (my surviving crew and some of my dismounted scouts have been shot by them), besides as former infantryman I dont want to waste hundreds of dirtleg lives.
After my first dissapointing assault, I've tried Mobhacks first suggestion and seems to work so far. I've entered the town's outskirts and proceding to bombard the heck out of the inner city to move further inside, most of the first line of armored defence is eliminated thanks to my T72s, and my better use of Mi24s (now I've used them further back as mobile ATGM platforms, though I've lost one of them from a lucky hit by an Abrams, plus I first sent my Mig-27s to soften up their AA defence) and casualties seem to have minimised. I know that if I take the majority of points in the city, the AI will try to counterattack, so if I make a good permeter defense around the besieged town it will be game over for the AI. Last, I want to thank the guy that made the scenario (and the previous which is a motorised rifle regiments river crossing), it's certainly a fascinating scenario.
edit: the scenario I'm talking about is #189 "Red Storm '85: the Tk DIvision in Assault"