No - if you choose the evil path, you become evil.
Paladins CAN become evil - it means that they have fallen and lose all their special abilities - making them fighters that level-up slowly.
Any changes resulting from the trials do carry over to ToB.
Races gives you access to different classes and have different max and min to charecteristics - nothing other than that i think. (this changes in 3rd ed AD&D)
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