I've played with it for a little while, and it works. It's very buggy and the triggering invitation quest can sometimes take over a year of game time to kick in-- it'll start immediately after you get one of those were-hunter letters, telling you your days are numbered. I've found sometimes a long journey from one province to another (and I mean long, go someplace far off and don't take a ship) can get things moving if the quest is stalled for some reason. The quests you get from the 'shapeshifter's guild' are also very buggy, and prone to be impossible to complete due to shifting time limits, invalid quest locations, and whatnot. My personal take on Werefall is that it's a good idea that was never properly finished. Supposedly you'll be able to get new potion reagents from the quests that enable you to brew 'identify' and 'recall' potions, but I've never actually had it happen. The major new magic item implemented is the 'Shirt of the Shifter', which is a poor-man's Hircine Ring substitute (and ugly as sin to boot-- I wouldn't wear that thing if it made you king of the werewolves). The letters you get for the mandatory quests have a habit of arriving right when you're in the middle of another quest, and given the time constraints on Werefall quests, even delaying starting one by a few hours usually means failure.
While I like the idea of Werefall, and I'm a big fan of weres in general-- my favorite custom class is a
Shifter, deliberately tailored to being a were-- it's too buggy to bother with most of the time. Save yourself the headache and give up on it. For a shapeshifter, I think the Dark Brotherhood is an ideal guild. Paid to hunt, potions and a spymaster, and even soul gems if you're a collector.