*I'm not taking credit for discovering this in any way, just bringing it to people's attention*
A new way has been discovered to change the model of your character without any of the programs that use to be necessary. A fix for this, will take a long time and not likely for hotfixing.
Step 1 : Make a new character of the race / gender / appearance you want to be, class does not matter. Also, for example if you're a tauren druid, you can be ANY race you want not just a night elf.
Step 2 : Log onto the newly made character, and then log off.
Step 3 :On the character selection screen, have the character you want changed " Highlighted " in that they are the character is shown enlarged, and have your cursor over the level 1 you want to look like. Click that level 1 and press enter at virtually the same exact time ( but with the clicking part being slightly before). If you fail in doing so repeat step 2 and try again.
Step 4 : Don't get sheeped / hexed / or shapeshift as it cancels the effect.
Screen shots :
http://i33.tinypic.com/1zdyq1y.jpg
Video :
http://www.youtube.com/watch?v=fSyj0IGZwo4
Video is not made by me and I take zero credit involved with it.