Personally, I don't think this type of game [i]could[/i] work without involvement of Modern/Mundane World Governmental Entities(tm), even if they aren't the governments of [b]our[/b] world necessarily, if that makes sense? The 'Modern' world might not necessarily be the world as we know it, after all, even if it conforms to our physics. At the very least though, there would be big questions about why, say, the United States(or w/e) wouldn't be interested in dealing with diplomatic relations with the new world and all that jazz.

I vote aye for various races, maybe leave exacts up to what people are willing to play(that is, if someone wants to play a nation comprised of hundreds of orcish tribes, then Let There Be Orcs!). Also in particular I vote aye for The Undead.
Mostly because I want to [i]play[/i] The Undead.

Finally, silly Spooky Squid. Keebler 'Elves' are a misnomer. Clearly, they're beardless [i]gnomes.[/i]