Nightstorm said:
			
		
	
	
		
		
			Since there are no other racial choices in Iron Heros they create "Shadow Born" to give the feel of having a tiefling character (very week tiefling at that). Would including 1/2 elves be too powerful? If you would create a trait giving you a fae bloodline what would that trait give you(in your opinion).
		
		
	 
I don't think "Shadow Born" is in there 
because there are no other racial choices, but more because it's appropriate to have it in the game, and - with the Swordlands - others are not.  If you haven't picked up the Mastering Iron Heroes PDF... and I wouldn't blame if you haven't for whatever reason; having the hardcover would be nicer... anyhow, 
all the magic items have some sort of demonic link to them.  Having dwarves, elves, halflings, etc right from the start would rather change the flavour of the Swordlands.
Anyhow, I think I read somewhere, but I can't at all remember where, that if want to use non-humans, drop 
both background traits in compensation for ECL0 racial abilities.
Having some other traits for various bloodlines would be interesting, though...
For something fey-touched, I wonder about adapting the benefits of the (overpowered for a 
feat) "Nymph's Kiss" from the Book of Exalted Deeds.  Or something like that.
Anyhow, for elven blood, maybe it would involve being recognized as "elven" by elves, a resistance bonus to enchantments, being able to see further with small light sources (double?)
But you could also simply pick other traits and explain them as having come from a racial heritage instead of training or life experience.
Elven/fey blood:  Forest Born, Bewitching, and/or Dexterous
Dwarven blood:  Tough As Iron, Resilient Toughness, or Stout perhaps