For some reason I can't get the overwatch mode to work for my squad. The computer seems to use it just fine. But every time I put my team members in overwatch mode to guard an area, the computer mob pops up shoots and hides again without my guys in overwatch mode ever doing anything. This is in turn based combat mode. Anyone know why I can't seem to utilize overwatch mode and the computer can?

Are you setting them in overwatch with all their action points? So them not actually moving or doing anything in that turn? Because you can't use overwatch if you have moved or done any other action in that turn.