Moving on to the Battle Report, here is some more information. In Montgomery, I figured out what happened: in the very first step of the Movement Phase the Union besieged the undefended city and captured it, but not all of the brigades could fit into the city, so those that remained inside fought the garrison units I quickly rushed there from other provinces. Being out of supply, the enemy brigades were easily destroyed, and two of the CSA garrison units got free Minie Rifles. But Montgomery itself is in the hands of the Union and must be besieged (see below).
The bigger battle, off in Cumberland River, had a nice bonus: Improved Springfields for the 45th Infantry. Also, the CSA 11th Division now has a "Superb" command rating, which is as good as it gets.
And look at the USA Army of Illinois (ignore the naming bug, which was fixed for the released version of the game; we're still playing a pre-release version, since the save files of this PBEM game are incompatible with the version of FOF that is being sold). That army's Command Staff rating was improved to "Bad"?!?!? That's one lousy group of officers -- if I were playing the Union, the Union that is so rich in money and resources, I would have dismissed those officers by destroying the army container and produced a new one, knowing that it's ratings would almost certainly be better.