How fast to expand? - In most games agressive expansion early is rewarded. The more you expand, the more resources you get, and the more weight you have behind you. GalCiv2 is one of thoes games.
Turtleing at your base means you only have 1 (2 if your lucky) planets that are giving you money and tec. More planets early mean more money later. If you dont do it, the AI will, and they will use thoes extra resources to take down your slowly developing planet later.
fleet composition? - I've found that a swarm of 7 tiny ships with 2 lazers2 each are a nice deturent. They work well for attacking, and they have enough of a punch early game to bite into anything coming your way. They also make good attackers. They are cheep enough that you can pump them out while doing other things and keep any losses replaced. Of course this only works early game.. later on more dangerous things are out there.
Personaly I prefere to attack them before they attack me. The derengi want nothing to do with me if I have a swarm of attack ships out ripping the Yor Collective to bits so I can expand into my planets that the they are squatting on.