I'd prefer both distorted and normal, like with your orc. I don't know whether you're after ideas on it's apperance or not, but this is what I have always imagined goblins to look like (except less cartoony):

Pretty much, long nose, chin and ears. Thus far I havn't seen any 3d goblins for Poser or otherwise that look like that, so I thought I'd throw that picture your way if you need any inspiration. :-)