We know that the dwarfs are cunning and misanthropic in character and incredible smiths, capable of creating magickal objects so valuable they are considered the greatest treasures of Asgard. Thor's hammer Mjolnir, Freya's necklace Brisingamen, and Sif's golden hair are all creations of the dwarfs. They live beneath the earth and have little to do with mankind or the Gods unless one seeks them out. What place they had in the religion we no longer know. It would seem wise to invoke them as spirits of the forge, but I can think of little other reason to disturb them.
Elves are the most difficult magickal race to pin down.
Mythological sources tell us that the Alvar or light elves live in Alfheim where Frey is their Lord. These two conceptions of elves might still be linked, however, as Alfheim is known to be a place of incredible natural beauty, and Frey, their leader, is an agricultural deity. To further confuse this issue, Norse folklore has a strong belief in the Landvaettir, or land spirits who may fit into either or both of these categories. I'm inclined to lump them all together as similar beings that we simply don't know enough about to tell apart. What is important is that Asatru, like all Pagan religions, honors the natural world and the earth very deeply.