I noticed some odd behaviour related to players being promoted from the youth team. This was when playing as Eastbourne Borough in the Blue Square South. At the end of my first season, I had released a few players and demoted some to my reserves, leaving a first team squad of 16 players, while I looked for new players to sign.
A player was promoted from the youth team to the first team. I decided to demote him to the reserves and loan him out, then hit Continue. When control returned from the game, I had another player promoted from the youth team. I was able to loop this behaviour, such that every couple of days a new player was promoted, resulting in around 20 players being promoted. Often these players had much better attributes than my established first team players (especially heading, which I believe was noted as a bug on another thread).
So, perhaps the size of the reserve team's squad should be taken into account when promoting youth players to a small first team squad (it also might be a bit more realistic if they were promoted into the reserve team instead).
Unfortunately I don't have the saved game file for this as the SD card in my phone died! I hope this feedback is useful, and I'm really enjoying the handheld version of the game, it takes me back to my student days