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and theres elves in rivertown? i didnt see any..

There are some elves in the Archers' Guild, in the south-west corner of the Rivertown map, near the entrance to the dark forest.

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and by working for the army, do you mean bringing the letter to captain matix, or whatever the name is?

I assume you are talking about the quest Seth gave you? In that case you have to talk to General Alix, yes.

I am in blood
Stepp'd in so far, that, should I wade no more,
Returning were as tedious as go o'er.