Let me preface this by saying that I am completely dedicated to my Shepard as canonshep and never had any intention of playing my first playthrough without her.
Using the process described by KunamiMata (not sure where the original post is, however it was quoted in page 67 of this threat by Cigarette Smoking Man), I was able to recreate my Shepard to my satisfaction. It may not be 100% exactly the same, but I expected some very minor changes anyway due to updated graphics/new hairstyles, so this is fine with me. If this is what Bioware had given me from the start, I would have accepted it. By the way, it took me about 30-40 minutes, uploading and tweaking time all included. I should also mention that I play on the Xbox 360.
ME2 Shep:

ME3 Shep:

Part of the problem with some of the pictures posted here is that the character creation screen doesn't necessarily reflect what you're going to get in game. The biggest problem to me is that the eyes appear dead, glassy, and pale, and the skin looks plasticky. Take it from me, when the character is animated, it looks great - as lifelike or more than ever. I would take some in game shots, but I assume that you really need to see the Shepard in motion (in both ME2 and ME3) to get the full effect. I got my Shep back

. If you haven't tried this process yet, please at least try - God knows when the patch will come.
To Bioware: I am a huge fan. I have followed all your games since Kotor, and I think Mass Effect might be the finest and most important video game franchise out right now, possibly ever. Your thousands of positive attributes as a video game developer compels me to forgive this, even if I hadn't discovered this workaround. That said, this oversight is fairly astounding and irritating to the extreme. It seems almost beyond belief that your flagship feature, a character continuum you have touted since 2007, is completely broken at launch. Your fanservice has been excellent over the years, so I'm confident you are taking this seriously and are not just betting that the vast majority of consumers are content playing Sheploo. Not to sound like an overbearing father or anything, but I am profoundly disappointed by this failure. I hope that you make this right soon, and for God's sake, hire a new QA team, maybe?
Also, I should extend a huge thanks to KunamiMata for their effective, inventive, and easy-to-follow guide for 360 users

- Arthur