Due to the ability to split off squadrons of cavalry in NB (MP as well), my take on that is that these are supposed to be serving as the same function of 'cavalry skirmishers' in the CWB series.
In a sense in the NB/MP series there is a flexibility with the squadrons' breakdowns that is not present in the Civil War series; I sort of thought I remembered reading someone post over on their boards sometime ago that they wished that they could breakdown cavalry units into skirmishers but that the optional rule in the series was the compromise to that ... not hundred percent that I am relaying that correctly as it has been awhile since I read that - it might even have been in the notes from the title that introduced that feature.
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I am going to have to go back and read this a little closer, as I was reading stacking something? Stacking is set in the PDT unless I am mistaken - I know that it is in MP, because I have played around with them and I can't imagine that it isn't in NB.
Edited: Stacking is the prerogative of the title's scenario designer. NRC/Waterloo as well as BPW were done by different scenario designers, the rest were done by Bill. There is no standardised stacking limits from one title to the next but that is something that would be the responsibility of Tiller's scenario designers, not the engine. These can be changed in the PDT file I am pretty sure, but you can kind of screw up a scenario if you just change it (especially if you decide to lower it, don't ask ... I think I tried it out on accident several times.). Charlie Cutshall did NRC and a lot of Waterloo, with Rich Hamilton doing some of Waterloo as well (I think the way things went was that Rich had to finish off the title so he pretty much inherited things.). In almost every series none of these published scenarios have ever been reworked -outside of those that Bill has spent a lot of time working on. They just don't have the resources to do this. The same rationale goes for retrofitting engine changes into previously published scenarios - they just don't do it (same reason.).
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As I said stacking limits are only a problem in melee because there is no modifier that reduced effectiveness like there is for fire combat.
Interestingly enough there is this feature in the MP series - it is coded in the oob file (there is also an armor modifier as well.). I doubt you'd get the armor modifier added to the NB series since what it also does is require weapons ratings to have an vs armor fire rating and a vs non-armor fire rating (effectively meaning that you only get half the allowable number of weapons in MP than in NB). Fwiw.