I dropped my 22" AK several days ago. Went right through the leather, between the wood slabs, and split the sheath.
I then made a rather primitive but functional sheath out of a sheet of kydex. I really believe that kydex, molded properly and with the right hardware attachements or cutouts, would be the ideal thing. And not only for saddles; anybody with a need to make a good weather-proof, non "armor-piercing" sheath should talk to somebody who knows how to fashion kydex. (This was my first attempt at making anything out of kydex, btw, and it's not as simple to use as some folks will tell you)
Keep the leather and wood sheath for tradition and "breathable" storage (since kydex is non-permeable, it tends to retain moisture inside near the blade.) and have a kydex rig made to your specs that will give you the carry options you want. or just buy a sheet (usually about $75) and play with it. If it comes out wrong, just reheat it and reuse it. Good luck!
P.S. They only had .060 kydex at my supplier, so i used two layers, which actually worked out better for me. But you can use layering and folding techniques to make the sheath completely safe and "pierce-proof."
Tom
[This message has been edited by TomF (edited 05-15-2000).]