Wow it's amazing, this is the 2nd or 3rd thread I ever did (so it's over 2 years old) and it's gotten more responses now than when I first started it.
I imagine the dwarves slaying the great Thingol probably put a big damper on their relationship. But again, it wasn't like all elves hated all dwarves. The Elves of Rivendell and the Noldor Elves seemed to always get along with the dwarves.