WELL THE WAY AH SEE IT
Dwarves:
A strong and stoic race, who treat every situation with a degree of seriousness and pride. Every Dwarf thinks of himself as a tool of epic importance on the cosmic scale. This is the reason for such dire punishments when mandates are delayed, and why no dwarf bats an eye when another one wanders around wearing naught but a vomit-stained hat and mismatched socks. It is because this half-dressed wretch of a dwarf still carries himself with such pride, such honour in all that he does. In dwarven society, the lowliest and most trivial jobs have the potential to become epic skills. What other civilization has legendary conversationalists?
Dwarves never look back on something and laugh. Situations that might seem humorous or unimportant have entire engraved walls dedicated to their memory. Where else but a dwarven fortress will you see an engraving of a queen being eaten by carp right next to and engraving of a farmer making cow cheese? This is because each event in a dwarf's life is just as important as the next, and no action goes unremembered. Dwarves will belt out tales of menial crafting jobs with the same honour and bravado as a soldier discussing past victories.
ELVES:
It is in the nature of an elf to be huaghty and indignant. They have an undeserved sense of superiority which often leads them into conflict with other races. Elven society has many secrets, one being how they manage to survive in the wild without building shelter. They refuse to share these secrets with other races, a tendency which also tends to lead them into conflict. Humans find elves beutiful, and as such are willing to forgive such indesgressions. Dwarves know the truth about Elves though, that they are a hypocrits, and a bigoted and reactionary race.
Elves believe that they are permitted to do certain things that other races should not be able to. Many times have elves sieged dwarves for the percieved sin of cutting trees, while carrying wooden weapons and armour themselves. Elves chastise goblins for eating their dead and drinking the marrow from their bones. But many a dwarf has been emotionally scarred by the sight of his fallen comrade being dismembered and devoured by a frenzied elf. Elves may seem nice to fledgling fortresses, bringing generous cloth and wood supposedly gathered through non-violent means. But their sense of superiority always leads them to war with the more developed fortresses, as they simply can not tolerate anyone with the potential to be more powerful than them.