Human Adaptability is present in two aspects, their greater number of skills, and their ability to have any prefered class.
For example, an Elf's prefered class is Wizard. This means that if their first class is a Wizard, they do not have penalties in their second class should it ever go beyond 2 levels of the Wizard class. However, if the first class they choose is not a prefered class of the race, they will get a penalty to their xp should that gap be crossed.
For example, a level 2/5 Wizard/Fighter does not get an xp. penalty, whereas a 2/5 Figher/Wizard would get a penalty. What this does, in effect, is force non-humans to keep all their multiple classes within 2 levels of each other if they do not wish to have experience penalties.
Humans, no matter what his first class, could be 2/11 and still get no xp penalty. This makes them a lot more flexible. You could get a Rogue to level 4, and then be a Wizard up to 16 (4/16) and you would not have any xp penalty. Do this with an Elf, and it would take a lot longer to achieve.
What I cannot remember, is how it works for the 3rd/4th/etc classes; although in effect, I doubt anyone in 3rd edition would try and acquire 3 or more classes. I believe it's 10% xp penalty per additional class; which is not insignificant. 10% penalty for second class, 20% penalty for 3rd, 30% for fourth.
What everyone needs to keep in mind, however, is that as a DM, you get to tweak the rules however you choose. You must simply make players aware of the changes. In my game, Trolls are overruning the main continent, therefore, I decided that all Rangers _must_ choose Troll as their first racial enemy (in 3rd ed, Rangers gain a new racial enemy every 4 levels). I also decided that Monks could only be Humans, Elves and Half-Elves.
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