The infamous kobold, centerpiece of a number of exploits I won't bother listing all here.
There isn't really a lot I can say here. Kobolds make good sorcerers, decent rogues and reasonable bards. They have wildly unbalanced stats, light sensitivity, some natural weapons and armor, darkvision, and a handful of skill bonuses. +0 LA, which everyone hopefully agrees with.
Note that kobolds are much weaker (potentially enough for a -0) if not built well. A constitution penalty and lack of real racial traits will see to that.
And before anyone asks: no, Dragonwrought is not enough reason to give kobolds a LA. Balance efforts should be directed at the feat, not the broader group that can take it.