This is the section on Demihumans for my (as yet uncompleted) Ostschild campaign guide
Elfs – PC Elfs are exiles from Elf land. Perhaps they were adherents of Oberon and Titania, maybe they just fled the oppressive rule of the Elf-King, either way, they are cut off from the source of their power, and diminished. Perhaps this diminishing is due to living in the world of iron? They have developed a tolerance for it in their time in the realms of man, but they are weaker than their Elf-land counterparts, both physically and in magical potency. Lacking souls, they cannot be baptized. Elf's may be turned by Christian Clerics and are harmed by Holy Water.
Special Note - Elf Steel is a special ore that can be found and mined only in Ostschild or Elf-Land, and may be properly worked only by Elfs.
Half Elfs – AKA Elf Karls. All Half-Elfs are the human children stolen (and replaced by changelings) by the Elf-King and raised as Elfs. They are quite mighty, as they have the powers of Elfs, but not the weaknesses. Once baptized they become Lawful (Good) and champions of mankind.
Changelings – Changelings resemble humans, they are harmless in that they won't hurt anyone deliberately, but they are of low intelligence, never speak, except to cry in pain or with some need. They are often weak and sickly, especially as children, but require more sustenance than humans. The church has decreed that changelings should not be killed, but taken care of as the perpetual children they are.
Dwarfs – A Dwarf's first memory is waking up, lying naked on the ground, sometimes alone, sometimes with his “brothers” around him. Where they came from, they do not know, nor do they know how they got here. Dwarfs used to have communities of their own, but most of them have disappeared, now they live among Humans. When it comes to religion, some Dwarfs accept baptism and become Christian, others choose not to, but exhibit no signs of religious faith otherwise. There are no Dwarf women. Dwarfs are known to be great craftsmen, also excellent miners. Dwarfs are known for their obsessive hoarding. They are particularly attracted to hoarding gold, gems and magic items. They are fond of strong ale and meat. Some Dwarfs are obsessed with sex with human (or other human-like) women.
Halflings - Halflings are the most common of the “wee folk”, they just seem to easily blend into human communities, many manors have a Halfling family or two. They are known for being “homely” types, happy to grow crops (including the pipeweed that only they can seem to make grow), eat hearty meals and drink fine ales. They love comfort, and nice things. Except every Halfling family seems to have that one outcast black sheep, the adventurer. The Halfing adventurer breaks the paradigm. They are bold, versatile and strong, they seek out riches and fight evil where they can find it. Most Halflings will defend their homes and communities fiercely, Halfling adventurers are more proactive, seeking out potential threats and ending them before they endanger any community. Some of these Halflings have built communities of their own, Halfling villages or manors.