I think I've got it! The GenHPLostInBattle actually returns genral's hp remaining after battle! Changing >0.3 to "less than"0.7 seems to work!
I've tested my fix and it seems to work. Idle generals don't get scarred. A general who stood in for a few minutes while being pelted with javelins got scarred!
I've submitted the modified txt files to the TWC downloads. Theres also a thread about it here, with the files as an attatchment.
http://www.twcenter.net/forums/index...ntry1811965396
If a .org mod (or anyone else) wants to host these files, that's cool.