Humans are, by far, the most abundant race. They can be found everywhere throughout the world. Humans tend to be average at everything they do, but are by far the best talkers. They can be sweet or manipulative. Either way, one cannot help but trust them.
Once the only intelligent species in the world, Elves are now endangered. Over time, elves have become scattered into many separate clans throughout various forests. Once held with high prestige, elves are now generally seen as "lower class" in human settlements. Elves remain the most proficient race when it comes to the usage of mana.
Tough as the mountains in which they dwell, dwarves are great at fighting. The greatly prefer melee combat, because, "throwin' sticks with rocks on the end is jus' stupid!" Over the centuries, dwarves have become great at carving stone and metal, and are excellent miners and blacksmiths.
Tortured. Abused. Mutated. Panic struck the world when dwarves mated with elves. The offspring were humanoid, yes, but horribly misshapen. Skin green as grass, very thin hair, abnormally large noses, people thought these children were demonic in nature. If it was discovered that such a child was born, the mother and the child were to be slaughtered. Families kept their pregnancies and childbirths quiet. Yes, eventually society realized that no evil magic was involved, but that didn't change their hateful feelings. Parents didn't want their children to mingle with goblins. The goblins were exiled. Forced to live in tribes. They became masters of stealth, sneaking into settlements to steal food and supplies.
Cursed by a powerful monster, vampires are forced to live out their immortal lives in darkness. Their skin shall burn if they venture out into the sunlight. Fortunately, however, over the years, they have found ways to circumvent this. Though it takes a long time to brew and can be catastrophic if done incorrectly, some vampires are able to brew a potion that will allow them to stand in sunlight. The potion doesn't last very long. It only gives about an hour of protection. Alternatively, if one's clothing covers all of their skin, they may also stand in sunlight, though this can be very risky, for it is rather easy for the wind to blow back a hood, or for an arm to become exposed between the sleeve and the gloves. The curse isn't all bad, however. Vampires possess great speed and stealth, and a superior intellect. They can be very good with mana and bows.
Vampires are frowned upon by society because it is widely believed that vampires must drink blood in order to survive. This is false. They simply enjoy the taste of blood, much how humans enjoy the taste of chocolate, or dogs enjoy the taste of everything.
Update: We may be using a different race other than vampire. After a bit of discussion, we've decided that vampire would make more sense as a feature in the game, not a race.
Resurrected by a powerful necromancer, the undead were meant to be used as a private army to rule the world. This plan was not well thought out, for not all undead remained under his control after the resurrection. When he resurrected those which were strong-willed during life, they retained their free will. Though the undead can appear skeletal or as a zombie, the undead are undoubtedly slow and uncoordinated. They are absolutely dreadful when it comes to stealth, and their embarrassing inaccuracy makes them terrible archers. Want to use mana? Forget about it. They aren't all bad, however. They are much stronger than they were in life (at least, they can use more of their strength), and they feel no pain, allowing them to take more hits. They seem to be unusually lucky, though, for some reason...