[akhtene]

If someone totally ignorant at war matters may have a say, I'd vote for elves.
Elves are excellent archers, while dwarves (for what I know) are good fighters only at close range - with their axes and swords.
Elves ride horses,which gives their army speed and manoeuver.
I believe elves should feel comfortable in caves (at least they used to live in cave cities), whereas dwarves in a forest ... should be like an oliphant in a china (?) shop.
Elves can make (or at least have a supply) of enchanted weapons.
Elves can probably 'employ' birds and beasts as their allys and scouts.

[img]smilies/biggrin.gif[/img] However, Lutfiska's idea of dwarves hiring baddies is worth concidering... [img]smilies/biggrin.gif[/img]