Who says they have to be bent like Morrowind? Why not something like the Turian from Mass Effect.
http://media.photobucket.com/image/recent/devindub/mass-effect-turian-artcropped.jpg
http://www.bioware.com/_commonext/images/me/turian_02_181x431.jpg
Much more realistic. To me it looks like exactly what a cats legs would look like if they evolved to be bipedal. Oh and it doesn't look ridiculous when they walk.