Region generation can take a long time, depending on reference density and the number of cells. It took my pc 11 hours to generate a region with a slightly above average number of references. I don't remember the exact size of the region (it was years ago) but it was at least a couple hundred cells. Then again, my pc is 6 years old. If your region uses a lot of references (objects like trees and rocks) it will take a long time.
Edit: The 'not responding' message is normal, so it's probably still generating.