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Do these units neet to manually target enemies (ie if you set up a roadblock) or do they automatically target enemies? Does the player order to direct fire increase their effects of these units?

Case Blue,

Welcome.[:)]

All you need do is order them to defend. They will then deploy, dig-in, observe the enemy and fire at them when the AI deems it's appropriate. I rarely ever use the Fire order but its there if you want to.

Additionally, you should know that any unit which is stationary regardless of its current orders from the player begins the whole deployment cycle. So, the unit or force does not need to explicitly have a DEFEND order from you for that process to initiate.