Seems I need to add more about what I would personally expect:

First off some statistics about Shadowdale

Government Elected Lordship
Ruler Mourngrym Amcathra
Population 14,000
Races Humans, half-elves, elves, gnomes, halflings

Fist thing I would like to point out is the population that is not reflected by NPC's due to that would be a damn lot!
There are a fair number of people living in around Shadowdale

Next the Races...you see yes some races would be noticeably out of place but some would not it would for example be harder to find the gnome that did it then the half orc

The current setting is Zhent controlled at the moment The current elected Lord has handed true rulership to the Zhents , he is a puppet king now. All players within Shadowdale and those who cross into Shadowale later are subject to Zhent rule and laws