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Basically, Viggo Mortenson's character, Frank Hopkins, is a famed American long-distance racer; taunted constantly for riding a mustang (mixed blood) as opposed to a pure blood breed. He's also half white man, half Indian, which does come into play, but only a little, and tastefully. After witnessing the "battle" at Wounded Knee (and I really hope the little subtitles didn't say Wounded Creek or I'll feel really stupid), Frank starts drinking, and heavily. So much so that he's reduced to working for Buffalo Bill's traveling road show. Buffalo Bill makes a claim that Frank Hopkins and Hidalgo are the best long-distance racers in the world -- a claim that is taken as an insult by the high ruler (and I'm only typing that 'cause I don't know how to spell the real word) in Arabia at the time. Apparently he would like to believe that his own horse and rider are the best in the world, which is not entirely unsupported as they have never lost in Arabia.
I think you know what's coming -- Frank and Hidalgo are challenged to race the Ocean of Fire, an annual 3,000 mile race across the Arabian desert area. Suffice to say that if I went into everything that happened during the race itself, you'd be here all night reading about it, so I won't.
Onto other parts: the soundtrack is absolutely amazing! It's one of the best I've heard in a very long time, composed by someone with a flair for old-style Hollywood. Which is wonderful, because it gives Hidalgo a very timeless feel, very old (with a sort of gritty feel to even the cinematography) but very modern (with its flawless transitions between scenes), and gives the movie a sense of richness that it might otherwise lack.
Let me not forget to say that the acting is wonderful (and I claim all rights to be down Lady Anne Davenport's dress). Lady Davenport is viscious in her own way, and determined. Jezira, the other leading lady, is no less determined than Lady Davenport -- but she is also strong-willed and quick witted and utterly adorable. Do I have to say anything about Frank? I don't think I should have to >>;; It's Viggo Mortenson, for crying out loud; I haven't seen a movie I didn't like him in.
Oh, and you'll love this -- there's no sickening underlying love story.