[@Fairess]That helps a lot. My basic character idea is some kind of (meybe self proclaimed) monster hunter who basically grabbed some weapons and headed out into the Jarlione forest some time ago. He might've headed out with a group, but right now that's irrelevant. In the forest he's basically been fighting the darkness and surviving much like the bandits. I want him to have seen the lord of the forest at some point, and in that situation he became a fae-touched (not by the lord himself, but one in his court). 

For him, the game's start would involve him coming home to society again. Getting to grips with how different he has become and over time figuring out that once you leave society you can't really come back, same thing that happened to Frodo in LotR.

You write that iron and holy things burn, would that include tempered and iron-mixed metals used in weapons?