I may have mentioned this before, but it's a strangely theraputic thing to paint those little models, provided you can do it half decently. I'm blessed with a little skill in that department, enough to pass casual examination anyway so it's not the exercise in frustration it used to be when I was learning and developing a steady hand. The real irony is that when I take my time now I can paint greater numbers of more complex models than ever before, though the difference now is that I'm only painting "cool" models.
I still can't recomend the middle earth battles models enough either, even the crappiest looking plastics (the men of rohan look dire until you start painting them) are really nice models.
The stuff I've done, or am doing at the moment and what I'd be using them for in RPGs are as follows (for all none of you who actually care :))
24 Goblins (8 with spears, 8 with bows, 8 with sword and shield) These guys are perfectly good for D&D or Merp goblins, they're also not bad for kobolds and the like, but as with anything, I'd personally prefer to be using actual kobold models) For the more cartoony FRPs like warhammer, I'd be inclined to use the warhammer goblins themselves.
10 Uruk Hai swordsmen (and a couple of spearmen when I convert the pikes into spears) Not much cop for anything outside MERP since they look too distinctly human to fit the WFRP or D&D depictions of orcs. You could use them as black warriors of some description, but then they look a little too bestial (and you'll feel like a right racist for using subhuman savages to represent blacks)
10 Skeletons: I got the egyptian undead set for these guys ages back and ended up using them largely in conversions, these 10 are all thats left from that effort (I reckon I might buy another box in a few months to pad out the numbers and for more conversion work). They're perfectly good generic undead, and theres a banner staff in there that works reasonably well as a magical staff of some description. I used it on a skeleton but if I was to think about it properly I would have trimmed off the skeleton hand holding it and used it as a part of a treasure horde.
22 Men of rohan (8 with spears and shields, 8 with sword and shield, 6 with bow and arrow). These guys are simply good generic humans from any army or set of guards you'd care to mention. They should work in any fantasy setting you'd care to mention I reckon.
I was also looking at the monster manuals for conversion ideas earlier in the week. MM1 yielded about 30 ideas, MM2 had about 2 - makes you think really. One conversion project I liked the idea of was taking plastic human militia from fantasy battle, filing off their faces and replacing them with skeleton faces, paint them white and make them spooky and you have yourself a host of lost souls.