@Edio: Non-core races may be accepted if A] you really really want to play them for reasons other than "it has useful racial bonuses" and B] I don't think the race is thematically stupid.
@Dwarmin: Kobolds are acceptable.
@Barbarossa I don't own Complete Psi, but based on the website description, it may be acceptable if you stick to mantles with powers from the SRD or XPHB or can provide me with the relevant info. LA buyoff is not allowed, as it leads to a variety of shenanigans. You may, however, provide a LA +0 version of whatever race it is you want, subject to approval. A lot of the more monsterous races have LA that they honestly don't deserve.
@mainiac: Provisionally approved, given that you update your stats to reflect a 32 point buy rather than a 24 point buy. Please write up your character sheet on mythweavers when you get a chance so I can link it in the OP.
@Criptfeind: There is room still. Characters are added on a First Approved, First Serve basis up to about 5 or so people. The halflings are more familiar with humans because they are closer geographically to Alfheim, but both are considered to be strange and foreign. You should, ideally, stick to core spells. Select non-core spells may be approved on a one by one basis, given that you can provide the info for them. This largely depends on how often your characters decide to stop on an island/shore and scope things out. If you, for whatever reason, refuse to go on shore, most combats will, by neccessity, occur onboard.
@Everyone: Point buy is 32, make characters accordingly.