So here I am, going through the races and classes presented in both the Kingdoms of Kalamar sourcebooks, and the current 4th edition setting, and how they both could work in the 4th edition setting.

Please note that I am adding one peice to the lore, and with the help of people more well versed in it than I, I shall expand upon it. The Riftmaster, for some reason that I shall devise, has either weakened or decided not to weaken the barrier seperating Tellene from the other planes of exhistance. This has allowed planar creatures to pass into the material world more often and with greater ease.

Races of Tellene:

This is the list of the usual player races presented in the Kingdoms of Kalamar Setting, and how you might consider playing them in the 4th edition game.

A note on languages: all races gain Merchant's Tongue (common), their racial language (if applicable), and one regional tongue granted to them from their chosen background (more on backgrounds later).

Humans: Well as the 4th edition human is presented, obviously. I am considering some feats, like presented in the 4E forgotten realms setting, that allow players to gain a benefit dependant on what kind of human they are (Brandobian, Kalamaran, etc.), but I don't think its necessary. Background benefits can be used to give players benefits related to where they come from, but their ethnicity itself should grant no real mechanical benefit.

Dwarves: Dwarves come in three different subraces:  Hill Dwarves, Stone Dwarves, and Mountain Dwarves. This is a throwback to the 3rd edition ruleset, and I'm not sure each race needs its own stats. Some different racial feats for each type would work, as shown in the forgotten realms player's handguide with the dwarves and elves. For now all three subraces use the standard dwarf racial stats, as presented in the player's handbook.

Elves: This one is tricky. Why? Because of the 4th edition eladrin. Let's get this straight, 4th edition eladrin are awesome. There are a ton of mechanical elements they bring to the game, and they also have a ton of roleplaying aspects. So here's what I think would work as far as the elven subraces go:

High Elves, Wild Elves, and Wood Elves: just as normal elves presented in the 4th edition handbook. They do keep their fey origin, but it is explained more in that they have aligned themselves so close to nature, not that they are actually true fey. Also will consider racial feats to distinguish the different subraces.

Dark Elves: as drow, found in the forgotten realms player's handbook, 4th edition. Can use the monster manual version if you do not possess this book. They keep their fey origin due to the otherworldly effects their dark magics have done to their bodies.

Gray Elves: Use the eladrin racial stats for grey elves. The leaders of these reclusive elves prophesized the Creator's return and took advantage of her attempts to break into the mortal world. Through a complex and powerful magical ritual, the lands of the Gray Elves were transported partially to the world beyond, exisiting still in this world and yet not at the same time. This caused an otherworldly transformation of all within.

Gnomes: I vastly prefer the gnomes in 4th edition to the beardless dwarves presented in the previous editions. The Kalamaran setting, however, has several different kinds of gnomes: Rock gnomes, forest gnomes, and deep gnomes. Racial feats will be added to make the different subraces mechanically different.

Half-Elves: As half-elves are presented in the core dnd 4th edition rulebook.

Half-Hobgoblins: Use the same statistics of Half-Orcs, found in the player's handbook 2, replacing +2 strength with +2 constitution. Any racial feats that give a bonus from strength instead give a bonus from constitution. This race will be fleshed out more later, but for now use the half-orc racial feats and paragon paths, reflavoring as needed.

Half-Orcs: As described in the player's handbook 2.

Halflings: As the race is presented in the player's handbook. Racial feats will most likely be used to make golden halflings different from regular ones.

Hobgoblins: As presented at the back of the monster manual. There are several different types of hobgoblin on Tellene, but really for the moment there is no need to make them different mechanically. At the moment they have no racial feats or paragon paths. Due to the importance of this race on Tellene, these will be added in the conversion to make them a fully playable and supported race.

Other Races: other races presented in other sourcebooks, such as the twighlight elves, bugbears, or orcs will not have conversions until I purchase the books they are associated with, and indeed are low on my priority list. Twighlight elves can be played using the same stats as elves and both bugbears and orcs have player stats presented at the back of the monster manual. That is good enough for now.