What I did to get rid of the LA on my races was to try and get an idea of how powerful each race was, then create a 'racial leveling class' for them so that they would not have any advantages over a human. Course, I had to make my humans a little bit better than the standard human, but so far everything balances.
In order to improve their racial abilities, they take a level in their race instead of a class level. So far, it's working pretty well, but the characters in my current campaign are only 3rd level...
Biggest thing that you need to do when tinkering with the races is to make sure things balance and the real test of that is to play the race(s) during a campaign.
Oh yeah, I don't give stat minuses for any of my races. I don’t feel it’s a good way to create balance, but that’s a personal opinion.