The game will take place in the kingdom of Hostria. Hostria is a large kingdom with many barons that answer to King Dmitri Radzig, Third of his Name. Dmitri claimed his throne fifteen years prior to the start of the game. The game will be starting in the year 837. Hostria's religion is based around the worship of Saints that have been chosen by one of the three gods that their religion recognizes. For example, the royal family are faithful followers of St. Katherine the Purifier, who was canonized when Morestion, the God that presides over the Good spectrum of Alignment (Lawful, Neutral and Chaotic) blessed her with a flaming bastard sword that she used to slay a necromancer that threatened the kingdom centuries ago.

The most common races in Hostria are:
-Humans (of course)
-Half-Elves (keep in mind that Half-Elves don't have an Elven parent in the traditional sense but a distant Elven ancestor)
-Half-Orcs (see the note about Half-Elves)
-Halflings
-Aasimar

So for some of the background conflict:
King Dmitri's coronation was controversial. His uncle, Duke Alexei von Taegir, believes that he should have been crowned king when his brother passed. Though no armed conflicts have been reported, whispers and rumors of the Duke rallying the Barons to his cause are heard in many taverns
Villages that you've visited don't care who sits on the throne in Blaythe (the capital) as long as war doesn't come to their tiny little homes

Morsetion is the God that is the Good aligned one.
Phaeron is the God that is the Neutral aligned one.
Kaestus is the God that is the Evil aligned one.

They are very abstract gods which is why most people in the kingdom worship saints instead, easier for the common folk to understand