Recent Rumors:

The Silver Elves have launched a successful assault from their enchanted walls.  Their combat magic proves deadly.

The silver elf assault wouldn't have been half as successful if their agents hadn't coordinated a "mindful fist" uprising at the same time.

The dwarven army fell apart when they were confronted with power mages.

There weren't enough stone dwarves to stiffen the mostly clay dwarf army against the terrifying magical assault.

Axe Reft Dwarf Rumors:

Dwarven women can only produce a few Dwarves of Stone over their lifetime. After the stone in their blood is used up, their remaining children will be Clay Dwarves

Dwarven women are frequently found fightering alongside their men, because any woman who stays at home has to bear more dwarves for the army.

The dwarven hordes are so vast that the breadbasket of Boscoan Plains are exhausted supplying the dwarves, leaving little for the farmers.

Fiendish blood (and even half fiends) are common in the dwarf armies

The dwarves of the king's clan have embraced the darkness and drawn upon madness

The dwarves have many warlocks in their ranks; their dark spears have been seen on many battlefields

Many clans serve out of fear and wish to choose a new king

Dwarves use demon allies in battle; some still roam the northlands

In the depths of the King's complex is a portal to a plane of riches, the source of his people's unending wealth

The Dwarves are preparing to mount an expedition to the Lost City, Sands of the Lost, to steal a mythical shield and adapt it to defend them against the Dead Zone (around the old Cloud Tower). -- Jennifer

Clay Dwarves are treated like trash and kept apart from Stone Dwarves

Clay Dwarves are cowardly and will break and run if they aren't led by Stone Dwarves

There are more Clay Dwarves than Stone Dwarves, and they continue to breed at an outrageous pace.

Stone Dwarves have difficulty telling the difference between Gnomes and Clay Dwarves, though Clay Dwarves are much harder to fool.

Other Rumors:

The Silver Elves invented "mindful fist" fighting (the monk class) as a complement (or side effect) of their magical studies

Silver Elves wander the conquered human lands, teaching humans "mindful fist" in secret to avoid the weaponry laws

Bronze Elves are rumored to have a tradition of Sword and Spell fighting (duskblades)

Ymsaril the 8th, leader of the true weres, lies on her deathbed. Her people seek out priests and mages to preserve her life.

The Merpeople are grumbling against the Goblin Pirates because they're soiling the sea; suspiciously, the pirates have lost a few ships in the reefs recently. -- Jennifer

Idea Prompts:

Kev, any rumors about the Draconians? Are they all cute and cuddly, or just the ones working for the dwarves? How about Draconia, the city they founded near the Mage Tower? What about the culture of the conquered humans from Lazor's homeland?

Josh, anything the gnomes are particularly known for? They've been fighting the dwarves the longest... and their old kingdom is now a part of dwarven lands. Do any gnomes still remember the secret ways? Are the gnomes comitted to reconquering their homeland, or would they be content in their new land if the dwarves would stop fighting them? Are there factions or leaders among the gnomes?

Ben, anything about the culture of Silverene? Or Golden Citadel and the Mage Tower in its center? Perhaps about the mages-- do they rule the society or participate in any way? Or are they reclusive and not a part of the main culture? Do they allow any other races inside their kingdom behind the wall? Any ambassadors to the world?