To WHW4, if you have any MERP campaign info that you're planning to translate to 4E could you post it here? For example, Noldor Elves are very much just like Eladrin, but would you substitute some other ability for their Fey Step? Would you make Dunedain exactly as humans or would they have some other stat adjustments? I'm just curious.
Our DM was planning to use Eladrin for the Noldor; we didn't discuss the fey step specifically, although had a PC chosen that race I'm sure we would have tackled it. I can't see it being horribly out of place. Tolkien hints at alot of magic that the reader doesn't really see, it could just be one more aspect of otherworldliness they possess. You could flavor it to whatever you imagined.
Thought I'd give an update, since this topic managed to stay on the first page. We began in the Iron Hills, and were sent by none other than Dain Ironfoot himself to investigate the areas and interlopers surrounding the much dreaded Lonely Mountain. This was to be a scouting mission only. Our first session went well, we had a dwarf warlord, a dwarf barbarian, a dwarf fighter (me), and a longtooth shifter rogue. Let me explain that last one, heh.
Tolkien talks about skin changers, and even mentions werewolves a couple of times. This is where I love that he hasn't written everything out in too much detail. The shifter is one of a very low population race that lives in Mirkwood, and was found when only a toddler by my dwarf, who himself was a refugee from Lonely Mountain. He has adopted the shifter as his pseudo-child and instilled in her all things dwarven. We may investigate finding her relatives/race in a future arc.
The changes we made (+1 Def/Atk/Dmg per 5 lvls, and keeping masterwork armor at stated cost but waiving the "enchantment") seemed to work well at the 6th level we decided to start at. We faced challenges equal to our level (as the DM was new with the 4th monsters) and did well, with only one close call when our barbarian was set upon by a shadar-kai controller (reflavored as a "conjuror of cheap tricks"
) and his henchmen.
All in all, we had a blast and never missed our magic items. We worked out that when magic items make their appearance they will just be using properties from weapons, handpicked by the DM to insure balance.
Oh, and although regenerating trolls aren't usual Tolkien fare, we've decided to leave things as whole-cloth as possible. Therefore we were much afraid to hear some trolls might be haunting the ruins of Dale, and promptly bought Lake-town out of alchemist's fire.