For those SysOPs having this problem on their server, here's a fix (thanks Scorp)
Either get the new DR3 CVS, OR
Open common/database.cpp
Find Database::CreateCharacter
Replace
	Code:
	if(pp->race > 12)
return false;
if(pp->class_ > 14)
return false;
 with
	Code:
	// if(pp->race > 12)
// return false;
// if(pp->class_ > 14)
// return false;
 That will "comment" it out (as you may well know), allowing those races to be used. 
 
I believe this works, let me know if I'm mistaken. It's probably just easier to get the new CVS, which appears to be fixed from what I can see.