Basically, I've created a new race that is just like a Nord race essentially, but without the stat buffs and abilities and stuff, and I'm calling it the HumanRace for the game I'm making.

Unfortunartely, the members don't want to wear anything. If I set their Armor Race to DefaultRace then they wear stuff just fine, but their bodies become invisible. Without this their bodies are visible, but they're naked.

Is this a Catch-22 or is there something to be done about this?

I have seen this happen when creating normal NPC's using the races that already exist, I cant remember what exactly I did to make the NPC wear stuff.
I think I made an outfit, Have you tried that?
Items>Outfit> create new
or just select an outfit in the actor inventory tab

Yes, my stuff is an outfit, however it is the outfits that are with the game by default.

Okay, I've mostly solved this problem by making a script. It does an OnLoad event that adds and equips the appropriate clothing to the character. Unfortunately, it doesn't quite work right for weapons. I can have them add and equip it, but when it comes to using the weapon in combat, they don't seem to like doing that. Does anyone know of a workaround?

Shot in the dark here but
is there a navmesh? sometimes actors do not use the weapon if there is no navmesh.
Might have something to do with stats of the actor.

Doesn't work in areas with functioning Navmesh.
Oh god I just realized why they won't use it... I have the weapons damage set to 0. That's the only way I can get combat to work according to the D20 rules.

CRAPPPPPPP!
EDIT: Tested and confirmed. I'm boned.

EDIT2: well, they'll use it even if the damage is at 1. So, I guess it will still be doing by far Most of its damage through the d20 system, but some of it will always get through because it has 1 Skyrim damage to it.

Did you set the Morph Race as well as the armor race?

No, I haven't done that. It doesn't seem to be causing any problems though, what exactly does a morph race do?

As I understand it, "Morph race" tells the game what modifications to make to the model based on things like the face settings for facial features...try setting Morph Race to "NordRace" and see if that works.