After updating my java install to a 64 bit version, most entities (including players) in the game are invisible. I have not tried playing other versions, but I suspect they will have the same problem. This bug is not present when playing with a 32 bit java install. EDIT: This issue has been resolved.
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Do you have an AMD graphics card? I found that this was another manifestation of the "invisible world" bug that seems to be quite common with AMD graphics cards. I fixed it by downloading the two .dll files found here (http://www.mediafire.com/download/xrz19juuo1a474o/AMD+Minecraft+Fix.rar) and placing them in the jre7 bin folder.
Still have this issue, I'm on java 7 64 bit and win 7.