Actually, if you want to play against the Habsburgs, the only reason they're not working is because of a couple missing lines of code in an AI file. The Habsburgs actually work really well, assuming you're willing to do the simplest of AI scripting.
In the AI3 folder there is a file called aiwottamain.xs. Open this with Notepad or some other text editor, find "Wars of Liberty Additions," and underneath that heading add the code:
if (kbGetCiv() == cCivHabsburgs)
gEconUnit = cUnitTypeTross;
gHouseUnit = cUnitTypeWOLHouseHabsburg;
This tells the game that the Habsburgs don't use normal villagers (or apparently build normal houses), but instead use their unique Trosses (and build special
Habsburg houses). The Habsburg AI wasn't doing anything before because it thought it was supposed to use normal villagers but it didn't have any.
I can't imagine this will work online, but you can (and should) always make a backup of the original file that you can swap out.