Early on, we found it to be too rough on victorious units to then be hammered by a poor moral test when a friendly unit ran away from the same enemy. So what we did was this...
1. If multiple units are fighting the same enemy (who losses combat), the allied unit who won isn't required to make a moral test for his breaking friend. In addition- the friend who lost combat is allowed to re-roll his failed panic check for ML- we figured they were less likely to run off in this particular situation (i.e. having solid friends on your flank is always good). We do have one exception to this house rule- the unit doesn't get a re-roll if it is currently being flanked by an enemy.
2. If a unit (in battle line per se) wins a combat against a unit, and is adjacent (within say 2 inches) of a friend who breaks combat, if that unit fails its ML test for panic- it doesn't flee, it instead becomes disrupted (and does not flee), but may flee if the controlling player chooses to do so. Our thought was given the momentum of the victory being interrupted as confusion passes throughout the unit, but far too many players were having victorious units flee in a domino effect due to one or two friendly units breaking.
We typically play 2000-2500 point games and it seems to keep units in the action for enough time to really mix it up- but in the end units tend to break when pressured by good tactics or maneuvering.
I really just wish more guys were playing COE in the Pacific Northwest.