Re: A dwarf by any other name...
You want to shatter the stereotype that Dwarves hate Elves then have the first "Dwarf" they meet a "Dwelf" a half-Dwarf / half-Elf mixture. Or even a village of them with considerable Dwarf / Elf residents to show their friendship.
Have several Dwarfs in the home base town show up in non-stereotypical occupations as they travel through similar to what was suggested earlier.
Another idea, use the "gutter dwarves" (I forget what they are called) from D&D and then expand the available selection of sub-types in other ways as the group gets more information.
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The World's Tallest Dwarf
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