Gnomish pretty much hit it on the head. The benefits vary from Illusion to Illusion but you won't get any of the penalties naturally associated with that race.
Illusion: Skeleton just alters your appearance, it doesn't affect you in any way besides making you undead (Unless I'm forgetting something from my Enchanter days?). Though, I wonder if it makes you friendly to other undead? Or do they just see through it?
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