There was a thread about this at the start of Cata.
Worgen women are not able to bear children otherwise they would shapeshift because of the extreme pain and kill the child.
Worgen men are only able to mate with Human women but the child born will be a normal Human boy/girl with no characteristics of the curse.
I have to disagree with this -- unless a Blue posted in that thread, it seems uhm... seriously wrong. Firstly, how do you have a "race" that's only got one generation? No, no, no.
First of all, a Worgen woman would be forced to shapeshift into Worgen form so if the woman is already in Worgen form -- which, as discussed above, they would need to be -- then there's no shapeshift and no killing the baby. So, let's nix that whole theory right now.
As for your second point, in the world of Azeroth, curses pass on. Look at the curses we've seen -- most notably the Blood Curse the Orcs were under. Not only was it super contagious but all of the children got it as well. Thus, we have SO MANY green Orcs. And there will continue to be green Orcs for forever.
Aside from that, the Worgen curse is spread via bodily fluids -- saliva, blood. Chances are some other fluids, if you know what I mean, since most diseases don't just stick to one or two fluids and call it a day. Particularly anything involved in DNA is going to be in *every* fluid of a person's body, and I think we can all agree that Worgen have had their DNA altered by the Curse. So, if a Worgen man were to mate with a human female she'd probably become a Worgen herself and so would the resulting baby.
Anyways OP, probably non-Worgen children would tease and bully the poor little kid. But I think that you'd be able to have the kid in human form if you administered some of that fancy night elf potion early on. I mean, be prepared for bullying and for your own kid to bully back and, y'know, be a furry terror. They'd have to learn everything normal kids have to learn as well as how to control their lupine side and how to not kill things. It'd be difficult, but I think it would be worth it.