That looks very cool.
Not sure that is possible to make a hydra, as the game only supports skeletons of a given type, talk to hellfire on the subject ( post in rwscreations.com )
Can you make a hydra with NO heads, just a headless body ( use a dragon for that even ), or a single head.
Then make a skeleton and animation for a head which is attached as a vfx model. ( look at the vfx editor, you can put on models of items if the skeletons match ). The idea being each head has it's own movements and it's own skeleton which is more of a visual thing.
Now further, if you can get the skeleton use to be the same base one, but vary it's position in variant files ( just move the head position ), and do this 5-10 times. Then go and apply vfx to the base model via scripting in game, when the player cuts off a head,or based on hit points, make 2 show up - how many heads is done via script and shown via applying the custom vfx you set up.
If you scale your placeable or scale up a dragon ( you can't scale models in vfx at all ).
I'd like to see medusa hair as well