This is perhaps the most astonishing of all the talents granted to the Druid. Shape Shifting allows the Druid to manipulate their own flesh and form, taking on characteristics and capabilities of the beasts they have sworn to protect. Druidic warriors follow two paths: the path of the Bear, and the path of the Wolf. Some Shape Shifting skills are available only to a single animal form, while others are common to both Wolf and Bear forms. Note that while in animal form, Druids lose access to certain skills.
While in Werewolf or Werebear form, you will still use the damage from weapons or ranged weapons. It's really just a graphical change. You will still be swinging your sword or shooting your bow, but it will appear as if you're hitting them with your claws. You will not gain the benefit of attacking from distances when using ranged weapons in Werewolf or Werebear form. Ranged weapons will work, but you'll have to move to melee range and use the ranged weapons like melee weapons.