I'd just like to say this before I comment - Shadow World ROCKS!!!!!!!!!!!!!!!!! :O
I can't really stress that enough - but I'll leave it as one line above so as to not bore you.
1) Due to the Essænce flows around the planet, causing random Essænce Storms and actual storms, travel can be a bit hit or miss at times. It's great for a GM to sweep them off to a strange land for a sub-campaign if needed. Hiring a Navigator (which is a member of a magical guild devoted solely in getting people from A to B) is needed to guarantee safe passage (which is on top of hiring a ship and crew) as he'll circumnavigate any potential problems - or even teleport a party instantly (but that's a lot more expensive).
Travelling without a Navigator is mostly fine if you're booking passage on a ship that normally travels in those directions and from Sel-Kai or Katine, the two major trade centres in Emer, there's normally a means of getting from A to B between most places in Emer and Jaiman.
Although there have been other Adventure Modules for Shadow World that focus on locations other than the 2 main continents of Emer and Jaiman, these aren't considered as cannon material anymore so until Terry creates more stuff for elsewhere, Emer and Jaiman are all you really need to get to currently. Baring in mind that Emer is roughly the size of the USA, there's plenty of adventure possibilities and plenty of Adventure modules already available if you're like me, and can't manage to create adventures myself.
So to recap, travel is possible and can be an adventure in itself as it used to be many years ago here. There is the added twist of actual sea monsters as well as the potentially dangerous Essænce storms but this only makes it marginally more dangerous.
You can travel by land, sea, air and even instant teleport but there are other ways to get from A to B on top of that which you'll find in the adventures (and I don;t want to give anything away now).
2) Elves are very much like any other fantasy setting of Elves - and you have the High Elves, Wood Elves and Aqua Elves as well as many different distinct Half Elves due to the combination of different Elven and Manish stock.
High Elves are actually broken down into two different groups as well - the tech hungry guys (who have the zeplin type aircraft) and the more arty-farty type.
So travel is fine for Elves - no bonus dropping.
There's also loads of distinct races other than the standard common man and high man. One thing that's missing are halflings - which is not a bad thing!
Shadow World has a VERY rich history and the adventure possibilities are endless!!! A Shadow World Master Atlas (either versions 1 to 4) is needed on top of any adventure modules to get the greatest benefit out of it as it outlines the world state and the specific groups common to all of Kulthea - it also includes the entire timeline as well.