Battleships Forever is a good freeware strategy game. Also, Warzone 2100 is an interesting strategy game where you can actually customize the units that fight for you. (Also Freeware)
For simulation games, I like recommending almost any game from the Mechwarrior series. You can download the first Mechwarrior game off this site, and Mechwarrior 4 Mercenaries has been released as freeware.
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