You had mentioned NOT to use the hands patch. Where can I find this NPC reconstruction patch? does it have the hands? are there any screen shots i can check out? cause the reunion models seemed incredible. What happened to reunion? did he drop of the face of the earth? i Noticed around page 18-20 he stops posting.
The "hands" patch conflicts with the Reunion/NPC Reconstruction project patches. Therefore, it's recommended you only do one or the other. I'm sure there's a way to do both, but the NPC Reconstruction patch (I recommend you use this one, as well; it has more models, Reunion's models have been resized and better adjusted, and it's still work-in-progress) removes the blocky arms since it totally remodels the models.

As for finding the NPC Reconstruction patch, it has a big, old thread sticking right out in your face on the first page.
Before installing it, however, make sure you have clean, unmodified versions of "world_[insert your country here].lgp" and "char.lgp." It modifies both of these, and the NPC Reconstruction patch won't recognize modified versions (and therefore won't patch them). It installs the same way as the Reunion patch, so you can even follow the tutorial thread on this board to install the NPC Reconstruction patch; just replace "Reunion's patch" wherever it's said with "NPC Reconstruction patch."
Reunion didn't necessarily drop off the face of the Earth; I think he stopped updating his project that's all he probably had time for and/or didn't know about those devoted to the NPC project. I'm sure he's found out about the project since, but I'll bet he's too busy to bother too much with it.