How about the torso of a woman cut from a sheet cake. Do a bra on top that has lots of bangles and beads (and lay a scarf over that). On the lower half of the body you would HAVE to do the little bangle belt for the hips and then some "flowy" skirt to finish it off. This sounds like a fun challenge. Make sure you post your pictures. (Oh yeah, and a belly button gemstone would be a nice touch!)
I agree with using fondant...try to roll it as thin as possible (or use a pasta machine if you have one). If it's really thin you could "peek-a-boo" some of the details of the part of the bra and/or skirt that may be covered. Toss in some dragees for detail and sparkle...they are my new favorite decorating item and they come in a handful of colors.
I just did a search on this site for "belly dancer" and two really cool cakes came up. Not sure if the link will work, but check them out. They are awesome!!!!! http://www.cakecentral.com/modules.php?name=coppermine&file=thumbnails&meta=search&type=full&search=belly%20dancer
Quote by @%username% on %date%
%body%