The Introvert
Goose! (Duck, Duck)
Sounds to me like you're interpreting two realities simultaneously, and are trying to figure out reality number 2 (the elves reality) from within the paradigm of reality number 1 (the human reality).
If you go to a psychiatrist, they'll promptly decide that reality number 2 isn't real, label you with a mental disorder, pump you up with drugs that make you numb to both realities, and consider their job well done.
If you accept that life isn't what we think it is, accept that both realities are real, and stop being scared because of what people from reality number 1 (human) are telling you, you'll freak out less.
If I were you my primary focus is to not be scared. I am of the firm belief that people who "hallucinate" (ie see things not based in this reality) are not mentally ill, but rather, have more human potential than the rest. This kind of thing is only a problem because we live in a very close minded society based in science (things we can put in a test tube and throw into a machine that spits out a graph) that doesn't give a toss about spirituality.
So in closing, consider the words of a couple of wannabe hack scientists you probably never heard of:
"reality is an illusion, albiet a persistent one" - albert einstein
“The day science begins to study non-physical phenomena, it will make more progress in one decade than in all the previous centuries of its existence.” - nikola tesla
I like you. I like your answer the best, therefore it is the one I will choose to listen to.
:smiley_emoticons_mr