This game shall forever be praised for one thing, and that is that it actually used its technology to improve the characters in the game. It still has the best NPC "acting" I've ever seen in a RPG, no contest. The facial animations are *great*, the characters themselves are intriguing and very well written and the voice acting is awesome.
Add on to that the whole Masquerade bit. I was never a big goth fan but this really felt (and still feels) like a breath of fresh air in the RPG genre.
Then again, there are problem as well. During the first half of the game, there are plenty of ways to solve quests and many opportunities to use your skills. Even so, there are a number of areas which are just restricted until you get the quest to "unlock them" which is quite annoying.
Even worse, the second half of the game quickly turns into a combatfest, and combat is pretty fucking awful in this game (somewhat remedied by some of the fun Vampire powers you can get).
Still, it's really a unique game that every RPG fan should play. I still play it every now and then (though yeah, I almost never make it past the middle of the game). Mass Effect was praised for its characters and acting, but make no mistake, Bloodlines absolutely stomps all over it in every way whatsoever.
As for characters, my first playthrough was a Toreador. I think that was a fairly good choice for a first character. You just *have* to try out a Malkavian if you replay the game though, it's hilariously awesome. Tremere is also quite a lot of fun.