Okay I've been searching all night but I've finally found the problem here:
http://social.biowar...17217560-1.html
A brief excerpt of this discussion that reveals the issue is this.
Thayan wrote...
The 1.69 patch included a module OnEnter
script called x3_mod_def_enter that calls a function which will revert a
PC's appearance to what is coded for their base race. This is because
if a PC is not marked as mounted, and they do not appear to have a horse
'tail', it acts as a way to reset the PC's race to what the designers
think it should be based on the PC's base race. Therefore, to use the
1.69 mounts as Bioware implemented them and have subrace PCs maintain
their appearance, you need to modify multiple functions in the
x3_inc_horse script to either use a variable you store persistently
which has the subrace's true appearance. Either that, or if you're not
using the 1.69 mount system - stop the horse code in he x3_mod_def_enter
from running.
I've commented out the script and saved it to my module and all is well, am still even ablke to use the mount option for horses
'>. It seems the Community Patch 1.70 has fixed this a long time ago, if anyone who uses this patch could paste me it's version of x3_mod_def_enter, if it is that simple, it would be appreciated
'>.