<<Is it better to fight mounted or dismounted? I assume when you and the horse are fighting dismounted it gives a multi penalty to the critter. It seems like my horse hits better when I am not mounted on it in combat.>>
Yes I would think the creature would get a multi penality. Especially since our horses now attack the creature we are facing from the rear when we are not mounted.
This was a recent fix that I noticed. Prior to this the horse was facing the creature, which is an impossiblity for both you and the horse to face it.
So nice job on this fix whatever GM did it.
Otherwise I think it is just personal taste. Fighting mounted is more difficult, and evading is alot more difficult. Once you get the charge move, it makes alot more sense to fight mounted.
<<However when I am mounted it seems to display fewer "negative" behaviors, or maybe it just takes longer to display them.>>
I have found this to be true also. Since you always have contact with the horse when mounted, it does seem to cut down on it becoming upset.
Good observations!
Candidus