One thing that is different from what you are expecting is that the Magitek Armor actually doesn't reduce walking space. The times when you are actually in Magitek Armor in the Imperial Camp and in Narshe, you are actually on an alternate map that has a slightly different "Physical Map" that determines what tiles you can walk on. So if you plunk somebody in Magitek Armor in the middle of South Figaro, they'd be able to walk anywhere that they could normally (I think this will cause some graphical issues, now that I think about it).
The thing about the Magitek Armor on the overworld is that it's essentially all or nothing, in terms of which characters have it. Trying to go in between is what will cause weird issues with application and removal when you attempt to switch party leaders. You could end up with characters who are in Magitek Armor in battle who do not have it on the overworld, or vice-versa. I swear there was a video demonstrating this well, but I can't seem to dig up a link.
I hope that I'm not being discouraging by bringing up all these issues...
The thing about the Magitek Armor on the overworld is that it's essentially all or nothing, in terms of which characters have it. Trying to go in between is what will cause weird issues with application and removal when you attempt to switch party leaders. You could end up with characters who are in Magitek Armor in battle who do not have it on the overworld, or vice-versa. I swear there was a video demonstrating this well, but I can't seem to dig up a link.
I hope that I'm not being discouraging by bringing up all these issues...
Moogles FTW