Hi, haven't read all replies... With regard to severe stress & stereotypic OCD's I disagree thoroughly with tying a horse up, or hobbling(!) to 'get over it'. And the chronic severe stress will be effecting his health in many ways, not just from pacing. As much is done to manage behaviours in horses without treating the underlying problems, I'd actually look into how they handle severe stress & OCD's in humans.
Minimising the stress of the horses environment, rather than adding to it, is where I'd start. Don't stable the horse, but keep him in the field with other horses, so he can be a horse. Obviously putting him with a horse that's going to be taken away, esp by a child is not a good choice esp if he becomes dangerous! Give him time off from his intense routine.
Also look at his nutrition. He is bound to be very Mg deficient & maybe he's also too high in potassium, which are but 2 nutrient probs that can effect stress & behaviour. Then I'd consult the vet about sedatives or such for times you can't avoid doing something stressful with him.
After a while, easing into it, maybe with the help of drugs initially, hopefully you can get back to working him & occasionally stalling him even.
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