It refers to the amount of experience a person must get to level. So, say for example, it takes a human cleric (no penalties or bonuses) 100 XP to reach level 2 (I have no idea what the real number is), it would take a troll SK 168 XP to reach level 2.
For the halfling warrior it would be .9 * .95 = .855, or 85 and a half XP.
For the halfling paladin (if such existed, which they don't), it would be .9 * 1.4 = 1.26, or 126 XP.
That is the way I understand it.
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Tallenn 40 Druid
Marlock 29 Enchanter
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