OOC:
As OK as I am with the Hatcuri, I hope you'll understand that since such things are strange you're going to be in more than a little danger when it comes to even barely superstitious characters.
I'd advise you to have your character not go out in the streets without first wearing a heavy cloak or something, for example. King Erik has always been the sort of person to ask questions first and then go around burning people (or whatever) so it's logical that a lot of his royal army, and perhaps some of his citizenry and courtiers, would look to their ruler as an example and maybe act a little more tolerant of non-mundane things than would be accepted.
That's not to say you don't risk being attacked by an angry mob every time you go out in public, it's just that people might be willing to do business with you as long as you're OK with jacked-up prices and the like. You're still likely to be feared and reviled for being so far away from the norm, regardless of how the King feels.
The same, of course, goes for Filius' character. Though, obviously, to a lesser extent. As one of the two or three remaining elves of the world, or even just as the descendant of a line of magically-long-lived humans, he's going to be seen as incredibly strange. People will be wary of him, if they realize how long-lived he is.
Speaking of Kain, I recall that he mentioned off-hand at one point that he had to "Deal with the beast that killed his father". While this could just mean a particularly depraved highwayman or something, it gives the feel that there are monsters living in the dark places of the world...which is something that I like. It need not have any major effect, but knowing that people can try and create a regiment of wyvern-riders or something could be cool. Of course, the concept of monsters is kind of supported by the fact that Ice Trolls are used as an example in the opening post.
In any case, I've always been a big fan of fantasy settings that make use of incredibly subtle magic (Think of the magic in a Song of Ice and Fire. Or even a romanticized version of Aleister Crowley's ritual "magick") and a variety of races without having character motives split between the lines of species (Which is possible!). So I'm basically cool with a lot of things in that regard.
His eyes locked on the demon that stood before him, King Erik barely even noticed that the new speaker was not at all human. His guards, however, did. The closest stumbled away from the Hatcuri, bringing up his shield as he shouted "Another demon! They're everywhere!" Another guard, standing several feet away scoffed, "It's not a demon, you fool! If it was, why is it offering to help with this one? It's just...a..."
"FreaK? No, Fin, it's a damned Demon! Why can't y-"
"SILENCE!" the King broke into the argument between his guardsman, and the two immediately fell silent, "I have never seen such a thing in my life, but whatever it may be it has not acted as a threat yet."
With that, Erik turned back to the demon just in time to hear it speak. Though fear no doubt gripped his hear, the King's icy eyes held with the monster's burning sight as he replied "And how can I be certain you are to be trusted, beast?"