The Elder Scrolls IV: Oblivion Dwarf mod for Windows

Behold, the Dwarves have arrived, an ancient, near-extinct race of short beardy people. This race is great fun to try out, as the Dwarf race is considerably over-stated in some areas, and weaker elsewhere, but with the right training, can be unstoppable foes.

The only way to become a dwarf is in the race selection bit before leaving the sewers. You can only select your choice of hair and eye color by selecting it as a High Elf first. In other words, click race, then go to High Elf (via Imperial), and pick the hair type and eye color from here. Go back to race and click left for dwarves. They should match the High Elf selection. It's not a bug, but it should be noted that Dwarves don't swim well. Their size prevents them from swimming on the water's surface.