I think the point he is making is trying to make is why can't he build ships like that of the AI. What you describe is not uncommon when playing on suicide against ultimate AIs which have huge bonuses including miniaturization or if the ships are receiving boosts from military galactic resources. Since you have the AIs set to random, check and see what the Thalans are set to.

Rather than taking on the AIs superior ships, attack its economy. Take out its starbases which are poorly defended and capture its planets (you only need to destroy the planetary defenders not his fleets). Take out its transports trying to take back the planets; if they are protected by strong fleets you can't combat then destroy the colony before the AI reclaims it. With high soldering you may be able to hold it against one or more invasions.

The difficulty is Normal, the opponents I always set to random. I only have one (had) military starbases upgraded. Man, I didn't know they could make that much difference. I was monitoring Thalan ships to check weaponry when I researched defenses. This is a tough game, but extremely fun. It's a long way from Leisure Suit Larry . Waiting on Disciples III too, btw

thanks guys.

P.S. Have you been playing too long when you start getting mad at your opponents and taking it personal like? You know, wasting a colony just so they won't get it? LOL