Sir ThornCrest said:
Never done this so I would be interested in knowing how it works.
Thorncrest
Officially? You shouldn't start at first level. Characters like that are expected to be part of a party with an average level that is close to their ECL (effective character level).
There are options for DM's who want to start at first level, but allow level adjustment races:
Give them all their benefits right away, but they still start at 0 xp, and don't gain a level until they get enough to increase their ECL. (I.e. a 1st level character with a +2 level adjustment doesn't advance to level 2 until they have enough XP to hit level 4.)
--They start off more powerful, but don't advance until everyone else has caught up to them.
Stagger the benefits of the race over a few levels, basically forcing them to take "monster levels" until they have bought off the level adjustment. Savage Species has rules for doing this.
--This is much more complicated, but ensures that everyone (theoretically) starts off on an even footing.
Level Adjustment races tend to have a lot of problems at low levels and high levels. At low levels they generally have lower hit points and worse saves than an equivalent character without level adjustments, sometimes drastically so. At high levels it's the same problem, but worse. Races with a Con bonus suffer from this less at higher levels. The racial abilities are supposed to balance this out, but it really depends on the type of campaign. In combat intensive campaigns they tend not to be worth it, in my opinion.
From what I hear, it's slightly less problematic at epic levels, depending on the exact race and level adjustment.