I believe what you are thinking of is the Silvani form. I snagged this from another forum:
"Once your fae leaves the newbie area and arrives at Kelethin, the first person to see should be Katri, near the Old Kelethin Acorn Lift. She is the beginning NPC for the Fae Rite of Passage quests. This quest line culminates with the killing of Grender, in an instance inside the central stump. This quest line is time consuming, with a great deal of running here and there, but gives out some nice rewards, including a cloak that can be worn at level 6. Since crafted cloaks start at level 20, this is the only opportunity your fae will have to wear a cloak before then. Plus you gain some decent experience and faction with the city.
Another reason for doing this quest line, is it is a requirement to start the quest for Silvani Form, which you get from Aileeta, behind the Inn. Silvani Form, is that "tiny fae" buff you hear about. You turn into a very small Tinkerbell like fae, which gives you a few minor buffs for traveling, but this form drops if you go into combat."
I hope that helps!! :)
*(yes..newbie to EQ2-kinda..back after a looong time...maybe 2 years. I played beta and about a month at launch, then went to WoW..... hello everyone!)
Edited, Mar 5th 2007 11:59am by MistressKhallie