On Zetacron, the nature goddess Gaia did not create the elves, but wished to claim them as Her own (it seemed fitting to her, somehow, that elves should be bound to Nature). Thus, she used her divine powers to create a bond between Herself and the elves.
Dustwood is technically not a wood from a specific tree. It is an created fuel for fires.
Starting with the sawdust from a sawmill, adding a mixture of wax or pitch, and a few other things, the mixture is pounded or pressed toghether tightly. It is normally smashed into a round container, so when it is slipped out, it looks like a small perfectly round "log". (actually a lathed log, but you get the idea). It can either be used as a log or slices of a log can be used for a fire.