Correct, Britain was sympathetic with the South. So there was talk of attacking Canada, but it was decided fighting both the South and Britain was too much.
France did not recognize the South. Napoleon III, coward that he was, wanted the British to make the first move, and then he would follow. They never did, so neither did he.
The Emancipation Proclamation was issued in part to influence Britain and France to stop helping the South.
"Abroad, as Lincoln hoped, the Proclamation turned foreign popular opinion in favor of the Union for its new commitment to end slavery. That shift ended any hope the Confederacy might have had of gaining official recognition, particularly from the United Kingdom. If Britain or France, both of which had abolished slavery, continued to consider supporting the Confederacy, it would seem as though they were supporting slavery. Prior to Lincoln's decree, Britain's actions had favored the Confederacy, especially in its construction of warships such as the CSS Alabama and CSS Florida."http://en.wikipedia.org/wiki/Emancipation_Proclamation