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I recently picked up a army transport and it is great for my Nid army.

But I had a question, what works best for Fantasy knight figures?? should I go with a 4" tray and stand them up or go with a 1" tray and lay them down?? Laying them down seems like it takes up alot of room so more trays...

 

Do the math. If you can fit 3 one inch trays in one 4 inch tray (my reason being that the little floor thing is not taken into account, and 3 of them will pretty much be about half an inch anyways), which will net you the most knights?

If you can fit, say, 6 knights into one one inch tray, can a 4 inch tray fit 18 knights?

You can also finally do that Linear Programming stuff you learned in High School when you said "When will I ever use this in real life?"

Thank you for pointing out the basic math part of it...

But which way will get me the most figs carried with the least amount of damage

Standing them up will be your best bet, as the next layer wont be crushing the things popping out.

Your original post never said anything about least damages. Odd.