This bug is both on the ptr and live realms. When any female Draenei (does not have to be a priest) equips this helm, The medal on the tip of the helm sits inside the players chest. Here is a picture of it on live realms:

http://i356.photobucket.com/albums/oo1/easykillhere/ScreenShot_050509_144237.jpg (front view)


http://i356.photobucket.com/albums/oo1/easykillhere/ScreenShot_050509_144243.jpg (side view)

Both these pictures can be replicated on the live and ptr realms. Without any clothes on, the tip of the helm still sits in the chest, and look just like the pictures above.