You can increase the soldier size (texture) 2 times and then scale them down to appropriate size via SCALE factor in UNIT_PROD. Of course, it can be a problem to fit all soldier poses in one texture.
Could you upload any unit animations form Civ3? I'd like to see the format they use.
I'd drop 4, 8 and 12th frame. It will cause a little jumps in animation but probably unnoticeable.
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