Goblins & Kobolds
The following rules apply to all Kobold subspieces as well.*
The following additions to the kobold race are from the 2nd Web Enhancement published by WotC for their book Races of the Dragon. It is currently available for FREE on WotC’s website Wizards.com (see link below).
WotC Web Enhancement for Races of the Dragon: http://www.wizards.com/default.asp?x=dnd/we/20060420a
* Natural Weapons: Kobolds have two primary claw attacks that deal 1d3 points of slashing damage plus Strength bonus, and a secondary bite attack that deals 1d3 points of piercing damage plus 1/2 Strength bonus. Despite possibly being the weakest reptilian humanoid, kobolds retain a connection to their feral nature.
While this article does not come out and say that 1st level kobold characters (applying the core classes) are more accurately CR 1/2 creatures, the evidence presents itself. Despite how powerful natural weapons may seem in the hands of most characters, this ability does not hold up to aggressive min-maxing with kobold PCs.
For example, an elite array kobold fighter will have 11 Strength and, if lucky enough to hit with each one of these natural weapons, will deal an average of 4 points of damage (1.5×3 = 4.5 rounded down). The kobold fighter would be better off attacking with a Small greataxe or Small greatsword, both of which enjoy superior critical ratings. Adding a claw/claw/bite attack routine doesn’t push them out of the CR +0 category.
Moreover, giving kobolds natural weapons completes their reptilian humanoid heritage, as virtually every other reptilian humanoid, Small and Large, have a claw/claw/bite attack routine. Lizardfolk (standard, blackscale, and poison dusk), and the troglodyte all have these natural weapons.
Looking at the poison dusk lizardfolk in particular, the closest approximation to kobolds, they are a +1 Level Adjustment race, and rightly so. Poison dusk lizardfolk enjoy +2 Dexterity, +2 Constitution, -2 Charisma, and +3 natural armor. No Strength penalty for being Small, no light sensitivity, 30 feet of movement (again, despite being Small), and a +5 Hide bonus for their chameleon ability (on top of their size bonus). The kobold is in no danger of stepping on their feet, even with a variant natural weapons ability.
* Slight Build: The physical stature of kobolds lets them function in many ways as if they were one size category smaller. Whenever a kobold is subject to a size modifier or special size modifier for an opposed check (such as Hide), the kobold is treated as one size smaller if doing so is advantageous to the character. A kobold is also considered to be one size smaller when “squeezing” through a restrictive space. A kobold can use weapons designed for a creature one size smaller without penalty. However, the space and reach of a kobold remain those of a creature of their actual size. The benefits of this racial trait stack with the effects of powers, abilities, and spells that change the subject’s size category.
* Weapon Proficiency: Kobolds receive the Martial Weapon Proficiency feats for the heavy pick and light pick as bonus feats. Kobolds are born and bred miners, regardless of their actual profession, allowing them to easily wield these weapons.
* Weapon Familiarity: Kobolds may treat greatpicks (see below) as martial weapons, rather than exotic weapons.