Please keep this up, its freaking amazing.

Not a bad start, all of the other stories, either post 4th war or Naruto dragging emo-teme back have never dealt with his punishment or reform other than gloss over a short prison stay. Personally I feel that Kishi-sama cheated everyone with letting Sasuke go unpunished and then marrying Sakura, it would have been better to see him incarcerated, put to death or like what you've done, placed in a penal unit. This story reminds me of the "Last Chancers" from the Warhammer 40K universe, or the movie "The Dirty Dozen", it's got that feel. If I were you, I'd fill this with one shots over the time he's with squad 4 and reunite him with his old team mates at the end as a jar containing his eyes and a few test tube of "genetic material". Yeah, I've never liked him and always thought that he should have died over the course of the canon story.

Oh well, can't have everything I guess. Anyway, this is a good start and I hope it's updated soon and on a regular basis.

Surprising story... I hope you update soon!