Mr. Wilson
Explorer
My choice is that they can be both. One of the scariest 3.X campaigns I played in had Gnomes as the main bad guys.
Also, they're in PHB II as a PC race (given the statement that one of the races begins with Gn), so yeah, they can be PC's as well.
Also, they're in PHB II as a PC race (given the statement that one of the races begins with Gn), so yeah, they can be PC's as well.