I'd humbly suggest looking at my Rhunaria homebrew's houserule for gifts of the warrior's spirit, if you're making a low-magic campaign. These Gifts are essentially free, occasional boosts from the character's strength of spirit. They lessen the problems or weakness suffered by most classes in a game with uncommon or rare magic items (and lessen or remove the problem of facing critters with DR, since the Gifts of Manifest Spite and Manifest Fury give enhancement bonuses to ranged and melee attacks, respectively). This is in the appropriately-titled section of my Rhunaria webpage at Geocities (link in sig).
As for beefing up the races to make up for some of the power loss.....
I guess I'd suggest giving another (or extra) +2 ability score bonus to each common race; like another +2 Str for half-orcs, another +2 Con for dwarves, +2 Int for gnomes, +2 Cha for elves, +2 Dex for half-elves, and another +2 Dex for halflings. Humans should probably get +2 to any ability score of their choice. And of course some other benefits for the races to make them similar to LA+1 without actually incurring an LA..... For that, I would suggest looking at various folks' houseruled versions of the core races, here on EN World and maybe other websites, and cherry-pick whatever racial traits you like from those that fit. The "Races and Classes in this Forum" sticky thread may have some links to such stuff, and so will some peoples' signatures.
On the other hand, you could just give them all 1 free level in their racial Paragon class (from Unearthed Arcana; check the Hypertext SRD otherwise), without that paragon level counting towards their character level (essentially, it doesn't count as a level or hit die; the HD it gives would just be extra hit points (with Con mod added to it though), the other benefits just stack with the character's normal basic stats; the skill points and class skills would be separate though, and you'd probably have to decide if they quadruple their 1 Paragon level's skill points or their normal class level skill points instead; I would probably suggest quadrupling both). Then, maybe say that at 5th-level they gain their second racial Paragon class level for free, and the third racial Paragon class level at 10th (maybe 15th, depending on just how much you are or are not cutting down on magic items and stuff).