[ I think what PJ missed was the relationship between Gimli and Legolas was something never seen between and Elf and Dwarf. But yet that doesn't mean dwarves were hated by elves, when in fact it seemed like most elves atleast respected the dwarves.
Then we get to see Gloin's kindness towards Frodo during Elrond's supper. As it says Gloin and Frodo talked the whole time. Gloin had deep respect for Bilbo and of course would like Bilbo's heir.[/QUOTE]
There is, of course, that feud that started centuries ago when a certain woodland Elven King didn't pay up for a necklace...
It gets a brief mention in THE HOBBIT and, of course, in the HOME books. Then there's the mention of "evil woken in the mountains" by what is perceived as Dwarvish greed. In the end, though, I suspect there's a rivalry between craftsmen - both Elves and Dwarves are good with their hands. But you're right that the problem is largely with Sindarin and Silvan Elves.
As for Gloin, if you have a read of THE HOBBIT, it took him a while to respect Bilbo, at whom he sneered at first - only Balin was kind from the start, which is one reason why those of us who have read THE HOBBIT get choked up by that scene in Moria.