Be sure to pay attention to your triangle count, not polygon count when you are modeling. To get an accurate poly count for models intended to be used in games in 3ds Max, for example, you must convert the model to an editable mesh before using the polygon counter. This is because the game engine will view the model in the same way, ie. with triangular faces. The general guidelines for triangle limits are:
100-400 for simple objects (items, weapons) (64x64 - 256x256 texture size)
500-800 for complex objects or simple creatures (256x256 - 512x512 texture size)
800-1.3k for complex creatures (512x512 - 1024x1024 texture size)
1.5k-2k for characters (512x512 - 1024x1024 texture size; body parts split into separate meshes for texturing - left/right arms, left/right hands, torso, legs, left/right boots, head, hair)
As for what models are currently in demand, character models are always welcome until all the races are completed. Several things to keep in mind:
1) the geometry may look clean, but you have to keep in mind that the mesh needs to be animated and bend at certain locations
2) the character model has to follow the 2D image we have on the Races page fairly closely
3) don't UV map, rig, or animate the model until you have the base geometry approved - if you have moved on to further steps but are then told that you need to make fixes to the mesh, you'll be making more work for yourself
4) character hair is a separate mesh and needs to be interchangeable - so model it in a way that will allow a clean detachment from the head, and so that another different hair mesh can fit onto the head cleanly
5) the mouth needs to be able to open and close for animations, so make sure to have a small slit for the lips
6) remember that the majority of detail is created through the texture, so don't try to create everything through the geometry.
Modeling items is a lot simpler, and little things should be welcome at any time - weapons, foods, anything that you feel can add to RP (musical instruments, for example). However, we definitely don't want people to make quick and easy swords and think that they'll be accepted. If you're making an item model, try to make it unusual. I don't think we need any more generic weapons, so push yourself to create some unique concepts.
Character armor meshes are created by modifying the original character meshes, and these are not going to be given out to anyone who isn't on the team, or applying. Certain resources are kept to the dev team alone, understandably. If you have an interesting armor concept, it's going to be easier to have it made if you have a drawing. You yourself may not be able to model if it you're an art contributor instead of art team member, but you may see your concept get used
Right now only the torso mesh is changing, but some time in the future I think we will have arms and legs follow as well.
I'm not familiar with environmental modeling yet, and this is not something you should attempt without prior discussion with Talad. So stick to items/NPCs/characters. Hope this helps some, and feel free to ask more questions.