Ppl have asked once in a while if you could dress NPCs some gear and items etc. Usually people answer that you need to make a patch or similar.
Through some core editing and the mage spell "mirror image" (not actually using the spell, but the packet and flags) I made it possible to dress NPCs with gear.
Its a rather simple idea.
You can make an NPC, set the displays of items you want him to have and his race and gender (defines displayID) as well as facial features and skin color.
All this is done in the database. (which is rather self explanatory ..)
The values for skins and features range from 0 to 12 or something .. not quite sure how many there are.
Note that the items are DISPLAYIDS!! Not item entries.