So, mode 1 is for navigating (only turns by ailerons), while mode 2 is for the bomb run (keeps wings level, turns by rudder)?
(I posted the same question in the other thread about the 88 too by the way, then i came here to draw your attention to it and saw nadasero has posted here as well

)
I assume that mode 2 autopilot still needs a working gyro compass to set your headings, right?
So, i think we have a rough guide to go by at this point.
Let me also cover a small procedure that's called "getting on the step". As many of you might have noticed, certain aircraft seem to cruise better and faster after a bit of descend and they keep that extra speed without losing altitude.
Let's say we want to cruise at 4000m. It might be faster to climb to 4500m and then descend back down to 4000m and trim level, than just staying at 4km and waiting for speed to increase.
Flying FSX add-ons on a friend's PC i discovered that this is actually a real world procedure that was advised and used in various large aircraft (like the Stratocruiser and the B-17).
So, if we use this for our He-111 too, we'd get something like this:
1) Use the He111H if the reversed compasses on the instrument panel confuse you (like they confuse me

)
2) Climb to altitude + 500m (500 might be too much, we'll have to test this out).
3)Descend back to your chosen cruise altitude and trim level.
4)Calibrate your gyrocompass
5) Set desired heading at gyro heading + 9
6) Engage AP mode 2
7) Steer the aircraft left/right via the autopilot to align the target.
8 ) Convert IAS from km/h to mph and enter that value in the bombsight. Enter altitude above ground in the bombsight.
9) Place crosshairs on target and engage bombsight automation.
10) Open bomb bays, arm bombs and wait.
Does this look correct? I'll have to test this out soon