Early summer/late spring customizable characters will become available allowing you to select skin color, hair style, facial hair style,  and hair color. A female character base will also become available in mid-late summer.

In addition to customizable characters, the equipment you have equip will actually show on your avatar (character) in the game. Characters will also be able to wear and dye clothing. (see the previews section for an example of the new character art).

This new art will allow us to provide more realistic rendetions of what you acctually have equipped and will also allow us to provide more flexable skills to your characters in the near future.

Great! Houses, enhanced skill system, player trade, group chat and now that. Another good thing will be added to the game. Looking forward to it!

Is it going to be similar to the old Ultima Online paper doll? :)

Yes it will be similar to how the equipment shows, but armor is shown as two main peices helm, and the body armor will key off of your torso peice.

See the link below for an example:

 

http://www.fantasyrealmonline.com/Forum.aspx?ForumID=15&PostID=35&Bookmark=35&Page=0#P35