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My understanding of the rule was that if a region was invaded the first time militia would automatically be generated using the formula 2xPopulation + Number of Resource Centers. In a Player vs Player game my opponent invaded New Bern where I had one Leader and one Militia unit. No new militia was generated. If my interpretation is correct New Bern with 1 Population Center should have generated 2 militia units. Is there a random factor in this or is this a bug? I am not sure I can repeat it since it only happened in Player vs Player with Fog of War and PBEM.

Problem is repeatable, it occurred again on an invasion in Pensacola.  No militia was mobilized.  This was playing with the new update installed.  Does anyone know if this is a Bug or whether the manual incorrectly states the mechanism for Militia Mobilization?

Pensacola has zero population and resources, yielding zero militia mobilized.

New Bern should indeed yield 2 militia. However, remember that it will only do this the first time that the region is attacked. Was it attacked previously in the game? Keep in mind that a naval bombardment of any heavy artillery in the region will spawn the militia. If your opponent did this, you may not have noticed the spawning, and the free militia.

You are right on militia for Pensacola.  I forgot to check it population/resources.  I am still not certain on what happen at New Bern.  It was the first combat there but there was also a problem with version missmatch between our games.  Since then we have restarted.  I'll probably have to wait on more amphibious landings to see if there is a problem.