Helmets miraculously showed up on mobs and players for us around build 1034 (there abouts). I jumped from 992 to 1034, so I don't know exactly when.
I'm still more troubled about missing hair on certain races and giant heads all being cyclopes, than helms that most people turn off anyway.
Which, btw... "Show My Helm" doesn't work now either. =) Now you cannot get rid of your helm.
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