Well not necessarily, I can remember using Spirit of Oak in Karnor's Castle on live, and it transforming me into a tree, despite the fact there are no tree models to clone in KC. The close quarters restriction I cannot attest to, I honestly never tried before.
You can go to OOT and just face your character out towards open water and u will fail to gain the tree model as well. It seems the spell is running a check on closest tree model in line of sight of the character when that value is returned '0' then u get a giant 'xxxx' race.
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Original Minyin
Original Tattersail
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