This was actually a feature I did before Christmas and wanted to blog about it. For awhile we've wanted a way for people to display armor and weapons in their homes.
The art department made some great mannequin models and I had to come up with a way to allow you to equip armor and weapons on them. The easiest way to equip an item is simply to drag the item from your inventory and drop it on the mannequin. Assuming you own the mannequin, it will equip that item on it, but the item will remain in your bags. This will allow you to display your best set of armor without forcing you to leave it behind in your house.
I also created a new UI window that you can access by right-clicking the dummy and selecting "customize". This window shows all the slots that this item allows you to equip things into. This was done so that down the road we could create items where you could only equip specific things, such as a display for swords, or maybe some kind of stand that you'd set a helmet on.
The cool thing is that anyone can access this window, even if they don't own the mannequin, so people can see what item is equipped on it. This is a great feature for craftsmen that want to set up a store to show off their wares.