2.1.2 meant the end of Model Editing. You might find this weird since alot of editing is still possible, but Blizzard is slowly figuring out how to disable it...
The best example is my own character.
I've edited my character from human-> undead. The edit has always worked perfectly. Though now, in 2.1.2, I'm seeing an undead with Blond (my human's hair color) hair. I believe I can say that I'm quite experienced with model editing (been doing it for 1.5 years now I believe) and since the release of 2.1.2 (20/06/07 for the EU), I still havn't found a way to fix this today.
I believe I will not find one either. I've tried every single thing I knew that could be causing this problem, but nothing changed even the slightest thing.
My model isn't the only one having trouble. I've tested on a couple of other ones to, and certain combinations for human male->undead male seemed to be having trouble with the hair color not being changed.
This still is a minor thing that got disabled, but in time Blizzard will apply this "method" or however I should call it, to all the files.
A sad day imo
/charade