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You're really not supposed to bathe in the moonwells, you know.
The Night Elves are an ancient and secretive race that hail from the continent of Kalimdor. They were first introduced to the Warcraft universe in Warcraft III, in which they were portrayed somewhat differently than in World of Warcraft.
In Warcraft 3, the Night Elves were a society divided strictly on gender lines, with the males chiefly acting as Druids and the females as Fighters and Priestesses. Of course, there are no such gender restrictions in World Of Warcraft, so the flavor of the race was significantly changed to accommodate WoW's conventions.
The Night Elves are a moon-worshiping race, true to their name. They draw power from moonwells scattered about their lands, and make their home on the giant tree of Teldrassil, where they built their capital city of Darnassus, constructed out of white marble and living wood. Giant animated tree spirits roam their lands defending them from all attackers. Their racial mount is the saber, a massive species of tiger with great big teeth. Although they are no longer immortal following the destruction of the World Tree at the end of the events of Warcraft 3, the growth of Teldrassil is an attempt to regain it.
Night Elf players can be Hunters, Priests, Druids, Warriors and Rogues. They are the tallest race in the alliance, and have colorful hair ranging from green to purple, and skin tones that range from ivory to deep violet. Their racial abilities are shadowmeld, quickness, wisp spirit and nature resistance. Their high agility makes them excellent Rogues and Hunters, and they are the only Alliance race that can play as a Druid.
Shadowmeld is excellent utility, although it can only be used out of combat. It's not terribly useful for Druids or Rogues - although it does boost the effectiveness of their stealth abilities by a small amount without needing to be activated - it's very useful for setting ambushes in PvP as a Warrior or Hunter. It can also help while leveling to avoid roaming monsters while you regenerate your health and mana.
Quickness increases your dodge percentage by 1% - useful for any class, but especially so for Warriors interested in tanking., while Wisp spirit is also quite useful, as it increases the speed at which you move as a ghost by 50%, reducing the downtime that you suffer from an untimely death. They have good all-around statistics, making them good choices for just about any class that you pick to play with them.
A collection of overviews of the various races in World of Warcraft.