The Forests of Elhalyn are deep and vast. They made up the eastern border of the Cameron Empire and was a whole third of the Empire's territory.
This is the domain of the elves. The magic and secrets which lurk here are many, but they are also safe from detection. Although this land is sparsely populated the Kingdom of Elhalyn maintains a vigilant and effective border guard. Any outlanders entering unbidden will be chalenged and warned off. Passage through the Kingdom is available for a "Guide Fee" but only at specific locations. Anyone trying to access this land without authorization will never be heard from again.
The capitol city of Ithilien is located deep within the body of the forest and no non-Elf knows it's location. Very few outlanders are ever invited there and most of the natives vew non-Elves with deep distrust, even fear.
The Elves of Elhalyn have some odd notions past down from their legends. Due to a distant war in which the Elves left their homeland and fought with Dwarves against a Demon-King, these Elves have funny ideas about Dwarves. They think Dwarves can do just about anything. An Elf of Elhalyn would follow any Dwarf into battle no matter what the cause or odds. For similar reasons they also obey the words of the Royal Family of Ithilien unquestioningly. An Elf of Elhalyn would fall on his sword at the command of a Royal of the Clan Ithilien.
Elves from beyond their borders, and half-Elves as well, are treated with respect. They will be questioned on the borders and allowed into the Kingdom under supervision if no mischief is suspected.