For example, elves might be attacked by monsters only because they are elven. There are also some villages where non-human beings are not treated well. Elves can learn the first six levels of magic, so if you plan to take advantage of the magic available to elves you may want to have high intelligence and wisdom. Horun will sell some low level spells to elves in exchange for some materials from the elven forest, higher level spells can be found from monsters. One thing that you don't have to worry about as an elf is the lighting at night - elves posses a special ability which allows them to see in the dark.
Elves are extremely good with elven weapons and armors and especially good with an elven bow.
Once you reach an appropriate level, you may want to take the elven quest at the elven mother tree. This quest involves a retrieval of a necklace from Dupelgenon. You will receive a special elven sword upon completion of this quest. Visit the elven forest page for more information about the elven forest. They know much about the gods, but they are also the furthest from those deities they study, because wizards don't believe in any gods.