http://video.google.com/videoplay?docid=-565892407040979460&q=karazhan+wolf&hl=en Why Grandmother! What phat lewts you have!
....
Yes, that really is what the dialogue page says.
When the Big Bad Wolf goes "Run away little girl! Run away..." a random target in the raid has their armor reduced to zero(!!) and they're given a 50% increase to movement speed... and are transformed into a female gnome with a red hood and cape. Ha hah. Once 'Hood' is done kiting the Wolf around the room, the Wolf goes back to the highest threat target until he "Hoods" another raid member. He'll also do AoE fears, apparently.
Note how this encounter has a lot of voiceover work. Apparently, all the new boss encounters in TBC has voice overs.
Needless to say, I am so looking forward to doing this instance.