Elves:

The "Wandering Folk" live on the wooded island south of Alliance land, right on the border.  They are so called, because their homes, veritable palaces, move by magic throughout the forest.  Though if you were to stand upon the roof of one, you would look over the tops of the trees, their palaces can't be seen from the outside of the woods, or even from the air.  They also cannot be reached on purpose, but can only be arrived at by accident.  Even the elves cannot set out to go home once they leave, and have to wander through the forest until they happen upon it.  The elves, however, being eternal tend not to be bothered by the extra time it takes to travel, and are quite adept at the mental gymnastics that are required to avoid intentionally seeking the place that they want to go.  

The Wandering Folk are prideful, but nonsensical.  They are easy to slight by humans, because they take offense seemingly at random.  It is not clear to humans whether they [i]want[/i] to be offended, or their social cues are so complicated that outsiders step over their manners on accident.  

It is said that humans have a high capacity for reason, but a low capacity for magic, and that the Wandering Folk are quite the opposite.