1) the generals bodyguard regenerates over time- two or three turns should do the trick.
2) yes- have a look in the guides section, there is a great example of how to optimise your generals there. *edit- here: https://forums.totalwar.org/vb/showthread.php?t=45969
3) tricky one to answer from that description- if your cavalry get too close to the enemy before your armies are in range they will attract attention. try moving your line closer to the enemy as you skirmish and keep a good distance with your cav. you might find they do more charge damage when they do arrive as it can take quite a way for them to build up to full speed. they will also be more effective if the enemy are already engaged (pinned) with your infantry.
4) diplomacy can be hard sometimes- often good offers are turned down where stupid ones seem to be taken up straightaway. again there is a very good guide to diplomacy in the guides section (*edit: https://forums.totalwar.org/vb/showthread.php?t=36993), but if you have already beaten thrace then I wouldn't worry about it- you will still be able to build up your armies and just merge pre- reform units as is required (tip on merging- always pick up the unit with the lowest armour/weapons ugrade and drop it on one with better upgrades, experience will average out but the weapons stay the same)
Finally- BI is certainly worth it. it breathes a whole new life into the game and introduces some very different challenges. the effects of hordes really do change the gameplay and the reduced cities remove the number of boring seiges you have to take part in. There are some problems involved with it (and the 1.3 patch) but these are far outweighed by the benefits. don't get too excited about night battles though. they are few and far between, and not that exiting once you have had a chance to do one or two of them.
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