In Gylfaginning, by Snorri Sturluson, he has a few passages that help to illuminate these elusive creatures. " Above these ones( heavens) there is one called Vidblain, and we think that this place Gimle is there. At present, however, it is inhabited only by White Elves. Also : High one answers Gangleri : " There are many magnificent places in heaven. There is one called Alfheim, ( home of the Elves ), and there live the people called the Light Elves. But the Dark Elves live down in the earth, and are unlike the others in appearance, and much more so in character. The Light Elves are fairer than the sun to look upon, but the Dark Elves are blacker than pitch" . In Grimnismal it states, however, that Alfheim was given to Freyr as a gift just after he had cut his first tooth as a child. In the Lay of Volund, the great smith Volundr, is called the, " Prince of the Elves", and countryman of Elves. Back in Gylfaginning it also speaks of Elves as being Norns: " There are, however, more Norns that come to every child that is born in order to shape its life, and these are beneficial, others belong to the family of the Elves...."
There are several examples of interaction between the Elves, and other groups. In the story of Hrolf Kraki, which I justed posted in 8 parts, a Queen has as her lover an Elf , and bears the child Hogni, later in the story Helgi beds an Elfen woman, and has the child Skuld. Skuld grows up well versed in the art of black magic, and with her husband kills King Hrolf Kraki. In the final battle she summons all sorts of monsters, and Elven warriors, to aid her in killing King Hrolf Kraki. This of course clearly shows us that Elves are magical beings, who are a warrior class of beings like the Aesir.
We know that our ancestors believed firmly in them because they would often perform Alfablots, ( Elf sacrifices ). An Icelandic Skald actually was an eyewitness, to a small extent, to one of these Alfablots. Around 1000 A.D. he wrote that he was denied hospitality, something that was considered to be a moral responsibility, because the elderly woman was performing an Alfablot, and was afraid that All - Father Odin would be displeased for letting him enter. In Iceland to this day they believe in the Huldufolk, ( Hidden Folk ), that dwell in rock formations, though they may not come right out and say it. The tour guide, when I was in Iceland in 2009, admitted to me that if they believe a rock formation is, " inhabited ", they will build their roads around it ! When I asked him if he were Asatru he responded that he was Lutheran.
So what are these little " Light Creatures" ? Well, I believe that they are magical beings that can travel from place to place without having to physically travel. I believe that they have very powerful magic that should not be trifled with. And I believe that they are either related to, or have a very close relationship with the Gods and Goddesses. Remember at Aegir's feast, ( The Insolence of Loki, or Lokasenna ), it says : " There were great numbers of the other Aesir and Elves." Loki is also told later, " Among the Elves and Aesir drinking ale, not one wishes you well !" Whatever they are I wish that I could have some contact with them, but as of now I have never had any meetings with them. Then again maybe that is a good thing ! Humans don' t seem to fair well in their dealings with the Elves, at least not in the Eddas and Sagas !
Go with Odin's wisdom, Freyja's love, and Thor's protection !