Ok, the easiest thing to do for the races is to use Races and Cultures. For obvious reasons, no Shadow World races exist, and in my campaign at least, nothing 'monster-like' either. (I.e., no Centaurs, kobolds, etc.). I do like the Hira'razhir, but don't know where to put them, so they would be rare.
Further, instead of spending a lot of effort re-writing the adolescent skill tables again, when I post the information about the different countries, I'll simply list the most common cultural templates used in that land. It will be pretty obvious, though: countries with a lot of forest will use the Sylvan template, and so forth.
The only real differences, then are in how they fit into the world of Arrylon. Humans are the most populous, covering all of Amara (except for the dwarven lands), and most of the Audun. (To the south, the Fan-chi empire is human, as are the Geadhealtad peoples of the East). Half-elves are rare, but more common in Audun, closer to Medalliana. Half-orcs are more rare. Gnomes are pretty common, especially in the North, closest to their island of Durenor. Halfings can be found anywhere. Dwarves come in two different types, both racially identical, but culturally different. Most dwarves come from the Irenien range of mountains in North East Amara, while a few odd ducks might be from Bresdelen in the South.
That really leaves Elves. By default, player's are discouraged from playing elves, in much the same way that players in other games are discouraged from playing Drow. Plain and simple, they are the bad guys (not counting all the monstrous horrors of the dark god). However, should a player wish to play an elf and cannot be disinclined from it, there are only really three types. The High Elves are members of one of the Twelve Houses. The Grey Elves pretty much represent everyone else. In Meddalliana, however, most elves are Wood Elves. Theoretically, there are also the Eldain, but none have been seen in millennia. They would be akin to some of the more alien elves from Shadow World.
Finally, there is one race I need to build from scratch. They would be the changeling. In d20 terms, they were mostly based on the human, but got bonuses to disguise, plus the ability (obviously) to change their shape more or less at will. So I am opening the discussion for ideas about that race as a possibility as well.