So the 'enemy gains 1 VP if horse flees, but rider is living'...then another VP if rider is killed? That makes 2 VPs per cavalry model...

OR does a dead (fleeing) horse give the 1 VP for the one model, whether the rider dies or not...

I believe the way it is worked out based upon wounds inflicted, since the horse has one wound and the rider has additional wounds then you gain points for wounds, whatever is wounded. So short answer is yes the cavalry model gives 2+VPs (depending on if it's a hero). Hope that helps.

OK: thanks. Killing a regular Cavalry model in Lords of Battle gives 2 VP (and more VP if it a hero).

Makes sense. Good to know.