Before you choose your race and assign starting points, you will want to decide if you’d like to function best as an archer or as a fighter. If you want to use a bow, go kobold (or valkyn); if you’d like to melee, go Norseman (or dwarf). Any race can make an effective hybrid, but for a specialized approach kobold or Norse are your best options.
Which play style is most appealing to you?
Archery is most effective for realm defense and stealth group situations. Your ranged damage potential is reasonable as an archer, and in combination with well timed attacks from stealth and kiting, can be very effective without being overly dependent on timed abilities. But if you are in solo or bridge-type environments where close-quarters combat is unavoidable you will likely suffer. Having some level of effective melee is important if you want to solo. Melee hunters can perform toe-to-toe but do not have strong innate defenses, and so rely on timed abilities a little more than their bow-specd comrades. However, their damage is more reliable in so much as they can’t be interrupted. Hybrids attempt to do all things well, but need a careful combination of all their abilities to kill often. In a game this old most people will have had enough experience with other characters to make this an easy decision. If you’re new to DAoC plan to go hybrid.
Kobolds should divide their 30 starting points evenly between strength, dexterity and constitution. Norseman should assign their points to strength, dexterity, and quickness so that no quickness cap is required in any future templates; if you plan to go full melee, trade dexterity for constitution. Starting points can be changed, so don’t worry about it too much.