Modding

Is it possible to create a separate skeleton and geometry for the cavalry unit, distinct from the skeleton and geometry of the regular unit and rider? This is the only way to eliminate the hole without using effects.

You can create the cavalry unit as an NCF creature, and make the textures of the paladin and weapon transparent, and you will get the same horse without a rider. (Of course, you can do everything in 3ds Max and export it through Maya, but it takes a long time and gets tedious, and what hole are we talking about?)