Although the resizing does have some difficulties working with dynamic models (for examples wings on their ass, if the resized model is tall enough) it can do base races as long as you guys have the tail appearance for the dynamic humans - which we did, because I managed to make a drider sized halfling. It was hilarious.
Yeah, all the server itself needs is the models and you'll be resize any of the standard races and they'll be dynamic (to a degree, for example the clothing will be resized as well but wings and tails will stay where they are, we also had trouble with some - but not all - robes.)