100 years ago, the Great Elemental Wars came to an end.  Many died on both sides, all for what they believed in.  There was rumored to be a fire elemental back then whose heart had grown cold and bitter.  Her human form was depicted as a very tall woman with long, black hair and a dress as red as blood.  She would rain fire from the heavens down on innocent villages in the name of her family.
Then one day, a young human given power by the Good Avatar Aizen struck down the fire elemental and cursed her to sleep in ice for 100 years.  He kept her prison's location a secret and later passed the legend down to his seven children so that future generations would beware the elemental's return.
Because of his gift, each of his seven children had an elemental power.  Water, fire, earth, air, light, darkness and neutral.  The descendants of that bloodline would be born with whatever elemental power their parent had. 

(That is one possibility if creating a new char. However, most fantasy-types will fit in this world. The world is based slightly off of Daedal with a few elements from other games. It should be played as if it were an RPG sans dice [If only because it's based off of quite a few.] with boring "hunt 999 of this" side-quests [Not really 999. This isn't Maplestory.] as well the main storyline. There is a somewhat growing world with several named "NPCs". The Questmasters are the ones of note; they lead the way to the main storyline starting the day after the Rainbow Festival.)

The city of Palos is the place where this story begins.  That place was well-known for its policies against discrimination, so much so that the act of racial discrimination in that town was a federal offense.  That was what made it different from the rest of the world.
The city was originally built by humans with inspiration from elven design.  The buildings were curved at the top and made of marble with an abundance of flora growing around them.  Its citizens were a varied bunch; from orcs to brownies and everything in-between.

Near The Center:
Running the inn was an upbeat 'man' wearing what used to be potato sacks as his clothes.  His hair was bronze and his skin had a slight glow to it.
Western Palos:
West of that was the bakery, run by an elegantly-dressed human woman with long, black hair. Across the road from the bakery was the pet shop run by a human redheaded girl and her grandmother.  West of those two were a shop belonging to a family of farmers and a shop with items used by farmers.  Just before a fork in the road, there was a shop in which one could buy tools, run by a centaur.
Down a southern fork in the west road were the City Hall, Shopkeeper's Guild, Courthouse, and a prison at the southern tip.
On a bulletin board next to the prison are several jobs or "quests" listed. The questmaster is underneath a trap door next to the board.
Eastern Palos:
East of the inn was the blacksmith run by a nondescript, bald humanoid who seemed rather holy.  All of the buildings east of the blacksmith were empty; shops and homes for sale with a building near the eastern gate at which someone could purchase one of these buildings.
Southern Palos:
At the south edge of the town, near the southern gate, was the tavern, run by a pale elf of the snow.  The rest of the southern road was surrounded by temples and shrines to various deities, with a small park.
Northern Palos:
At the far north, there was a large building for magical studies.  Across the road from that was a school for melee.  Next to the magic school was a library and next to the fighting school was an armory supplied by the blacksmith.  Next to the armory was a tournament ring for fighting tournaments, across from that was a tournament ring for magic tournaments.

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It was an average day in the city of Palos.  The sun was shining, the birds were singing; It was peaceful as ever.  The citizens, despite their slight worries, went about their usual days.  No old wives' tale was going to bring anyone down, not on that day.  That day was the eve of the Rainbow Festival, a day celebrating the Great Hero given power by the Good Avatar.  It was a celebration of him bringing the world peace and the elements calm.  The shops got ready for business as usual, the farmers came into town to sell their vegetables, while a doomsayer or two cried about how the world was going to end soon.  The park was decorated with rainbow-colored stones along the paths in preparation for tomorrow's festivities.

Will, at the inn, collected silver from travelers who had just come in. The Rainbow Festival in Palos was one you simply had to see at least once in your life. The show was always quite spectacular and it gathered people from across the continent.
Ayna and Altrua Mill got many customers as well. The pygmy dragons never sold as well as they did around Rainbow Festival time. That wasn't to say they weren't popular to begin with; they were just on sale. They sold an occasional hunting dog or a cat, but the main thing customers came for was the pygmy dragon.
Voltissma shed her human form to cook the large amount of Rainbow Cakes for the festival the next day. She simply couldn't handle a single customer as long as she had to make the small festival pastries. The bakery was closed.
Despite the busy day, Xynliss got about as many customers as he ever got. Most people already had the tools they needed, he supposed.
The Farm Basket sold apple tarts as well as their regular vegetable crop. As well as those, they sold cactus imported from Morte, ten hours away. The apple and cactus were rare sights in the Farm Basket and the whole family had a lot of work to do just getting everyone's purchases done.
Klef had a customer or two. He was used to just the family across the way and someone from Morte buying from him, so to him, the shop was busy.
Vin and Von spoke to a man who looked like a bipedal turtle. It was about otherworld homes and how much money the two could get if their business dealt with those. The twins seemed convinced.
Noltiam and Isteviel weren't especially busy. Weapon aficionados came in, examined the merchandise, and then maybe had one made for themselves.
It was early in the day. The bar wasn't open yet. The bar's owner slept in a little cot behind the counter.
Brave Sir Robin didn't have any tasks for anyone. He took a walk in the park instead.

A person rode expertly in from the west on a palomino horse. She had on a horned helmet hiding her red hair, save a few strands. She had an armored robe on with gold leaf patterns about it, showing her to be a noble of Morte. Her boots and cape had the same symbol. She was a human, that much one could be sure of. She visited some of the open shops to see what she could add to her collection- Oh, a scythe! It had a strange second curve at the end, perfect for her strange-things collection in house number three! She bought seeds from Klef and he acted as if they had known each other for quite some time. Her demeanor was rather friendly for someone from Morte. They weren't known for their niceness, just their cacti. She walked on her way to the east side of town after she left her horse with the Mills.