You mean spelt correctly? Yes, Australia is correct. Ukraine has an i in it.
I remember playing on a map that linked Eastern Australia with Argentina, but maybe that link was drawn in to fix the gameplay.
I don't think Australia having 2 armies is incorrect - South America gets 2 armies for 4 territories. The big jump is from 3 armies for 6 African territories to 5 for 7 European ones. Europe has an advantage here - it should be only 4 armies for 7 European territories. Compare it with North America which gives 5 armies for 9 territories. Or you could create a new European territory. Probably a Ukraine that borders Northen and Southern Eorope and the remainder of the old Ukraine change to Russia.