Following some recent wrangling with house rules and character creation options, and a lot of discussion with the players in my campaign, I've come up with a finalised house rules / chargen document. I have had it both tattooed onto my face and carved into a huge stone altar from which I conduct my games.
It's been a long process, going from basic Labyrinth Lord plus some additional per-class character options plus quite a few house rules, to full-blown Advanced Labyrinth Lord, to the current state of moving back to basic(s) and gradually eliminating a lot of the house rules!
The character options (class specialisations, as I've called them) remain, as does the advanced concept of separate race & class. Aside from those points though, the house rules are very minimal.
It's a good feeling to have gone through that process and eventually come to a set of character creation rules which I'm happy with (and which hopefully the players are too, or can bear at least! ;).
For anyone who's interested, here's the final PDF: Character Creation in the Realm of old Aalia.
It also contains some encouraging OSR philosophy, in an attempt to explain the flavour of basic D&D.