Madmaxneo
Explorer
I run MSH/FASERIP with a few hacks:
1) I replaced Karma and advancement with hero points. You get 1 hero point at the start of each adventure and get more for completing encounters, doing cool stuff, etc Hero points can be spent for a bunch of stuff including negating an attack, boosting damage, getting an extra action, etc. or can be banked to raise stats 1-for-1.
2) I made the skill system a little bit more free-form (so someone might have the Farmer skill and somebody else might have the Football skill) and broke it into ranks that run from +1 to +3 (novice to master)
3) Lastly and most importantly, I rely heavily on the character modeling option in the advanced book. I work with players to decide what their powers should be, what the starting ranks should be, etc. so that everything matches their character concept and is relatively balanced. Powers are fine-tuned to match whatever the player wants rather than needing to work exactly like the version in the book.
All of these options emphasis FASERIP's fast and loose play and push it further into the direction of storytelling game, but my players generally appreciate it!
I have done pretty much the same in the past.
1. I still used karma but expanded to be much like your hero points idea. Which wasn't much expanding if I remember correctly. Didn't the regular karma rules already handle most of that stuff?
2. Did you make up rules for this and how did you handle advancement/improvement? Or is it something you do on the fly and approximate balance?
3. To be honest I rarely used the modeling options in the rules. I mostly took a character concept and helped the players (if they needed it) develop the heroes as they saw fit. It was more free form and story driven that way. I am not sure if I want to do that this time, though it might work pretty well.
Bruce