I still vote we go for a Garden of Eden, or a closed-in-by-cliffs jungle of some sort, which is ever changing. Souls there are pushed to become tough fighters and survivors(gradually- no newbie griefing) in this deadly jungle, filled with hostile versions of our creations, and less hostile normal creatures. This is relaxed for the souls of children or babies, who are allowed to grow into adults in a peaceful but toughening life in the normally unreachable center of the ever shifting jungle. Then get to becoming hard as nails. All souls there instinctually know they are there to become badasses.
Basically, a life god's version of Valhalla, which also has infinite respawns.
If that's too much work, then just go for a jungle surrounded by cliffs with a village in the center right now, or whatever it takes to build it. We can add the chaos element later.
I further suggest we build a fast, vampire/wolf like humanoid body(possibly big, and extra badass) for Laksus, using the already existing flesh of the dead orcs and whatnot, to help ease the cost. Any leftover flesh, I say pile up, and we pour all three Fire and Life of our elements into, focusing on making a bunch of creatures(sans human intelligence) like Laksus, minus any specialities he has, with the ability to hibernate until needed.
THEN, we pour energy into the fields until the villagers can use them, and get them to till another, and hand them seeds to grow an army of mantis men plant men, like from Nextwave.
As for the orc's equipment? Let the villagers do as they please with it. Plowshares, swords, whatever they want.
As a long term project, I think we should ask any pregnant women in the village if they'd be willing to allow us to modify their unborn child. My few ideas: Uber-humans. Dryad folk. Fire People. MUTANT PEOPLE. Some-sort-of-monstrous-humanoid. Of course, we shouldn't completely hijack the pregnancy. Just add slight features to the children, that, over a few generations will get us to our end result. Lets try to keep our chaos power FAAAAAAR from this project, unless we go for mutants.
I'm voting for Dryad folk, FYI.