Have you taken a look at Roderick's work in progress at http://groups.yahoo.com/group/Glorwar ?
Although most of the latest work has been on a skirmish-type game there is some earlier material on using HW to narrate larger battles - I've not read it for a while, so I can't really remember how much it might answer your questions (but I've just dug out my copy of "TARSH WAR" so I may revisit it again in the not to distant future...)
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