I DM a game with a Wrebear. The Party is Level 6-7. A 6th level ranger was contaged with Lycanthropy, and decided to keep it. Since the full Lycanthrope change is 8 Levels (6 animal Hit dice, and 2 LA), I decided to use the WOTC savage progression mentioned before. In order to keep it slightly blanaced team wise, what I didi was bump the Ranger to Level 8 (Ranger 6 + 1 Level of template + 1 Bear HD) but kept his earned XP the same. Basically I loaned him the XP (without interest

) since giving him only the first LA of the template would have pretyy much shafted him: change shape into an animal form withou Natural attacks. The first Bear Hit dice gives him a bight attack at least and skills to put into Control Shape. This keeps a melee character involved in the story. Last night was the first time he screwed up a control shape and had to fight in bear form. He wasn't too disgruntled, and is currently salivating into taking the second Lyc LA for the hybrid form.
The werebear is a lot of fun for everybody, and I also House ruled that his Bear HD and Lyc LA's count as Levels for his animal companion. So he changed his wolf for a bear.
This might not be to useful, but I think it was worth sharing that the Wrebear is fun, but involves forgoing regular and planned character advancement (i.e forget about taking Prestige classes, Animal Hit dice are the way to go.
On a side note, I've always had trouble with Forced Alignment changes. With The Lycanthropes I choose an aspect and explain teh Alignment shift that way:
Bears: very protective..... Lawful good. This doesn't mean he follows the laws of the land, etc...but that he's now very protective of those he cares for. Almost Instinctually.
Wolves: They love the Hunt. They want to hunt tougher prey each time. What's topugher to hunt than other intelligent beings. But the hunt brings out instinctual savagery during the kill.
But I also use a less strict interpertation of alignment anyways