This subject has been BEAT TO DEATH. Please review past postings and you will get a TON of answers about this particular subject.
Races pros and cons in a nutshell
Human - pros: no exp penalty, decent start area, decent faction, medium size /cons: poor night vision, average starting statistics, cannot slam
Gnome - pros: no exp penalty, small size, decent starting area, tinkering, above average starting int, best starting faction for an SK /cons: below average str/sta, cannot slam, constantly getting "I'm gonna (step, eat, ****, etc) you/on you" remarks from other races due to diminutive size and papa smurf 3d graphic
Dark Elves - pros: DE SK's look kewl, good starting int, good starting location, excellent night vision, medium size, no exp penalty / cons: below average str/sta, cannot slam
Ogres - pros: Best starting Str/Sta, decent night vision, Frontal Stun resistant, can slam / cons: dumb as a box of rocks, 15% racial exp penalty, below average faction, Large race (cannot fit in some areas without shrink)
Trolls - pros: Second best starting Str/Sta, decent night vision, Regen (decreases in usefulness at higher lvls), can slam, shares starting location with DE's / cons: dumb as a box of rocks, sucky 20% racial exp penalty, Fire Resistance penalty, below average faction, Large race (cannot fit in some areas without shrink)
Iksar- pros: Above average starting int, decent exp starting area, Regen (see troll), AC bonus which gets better at higher lvls, medium size, excellent night vision / cons: below average str, sucky racial 20% exp penalty, sucky faction, cannot wear a lot of pre-planes of power plate armors, cannot slam, having to fight off all the chicks because of how kewl they look...
Erudite - pros: Best starting int, no exp penalty, decent starting area, decent faction / cons: girly man muscles and stamina, looks like a throwback from a Saturday night live Conehead episode, no night vision, cannot slam
Top of the Hate list and then some...