Danny, you're right about Hindman's problems with an abundance of cavalry -- there is a letter in which he says, "For God's sake, send me no more mounted men."
But somewhere in this rat's nest I laughingly call "my files" I recall seeing some correspondence regarding Hill's Cavalry Battalion (later increased to a regiment). I can't lay my hands on it at the moment, and I can't remember precisely what the correspondence said, but I vaguely recall some discussion about the state of affairs in northwest Arkansas in 1863, and that Hill was authorized to recruit a sort of partisan-ranger battalion from among the local population to scout and harass the enemy, operating more or less independently. Eventually, several independent mounted companies were attached to Hill's Battalion, and it was assigned to Cabell's brigade as a standard-issue cavalry regiment.
If I run across the document I'm thinking about, I'll post the correspondence.