Like Val said, it's good, and deserves a good rating. Alas, toxic waste, mutants and ruins have been done before; the added novelty lies in the fact that a large part of the setting are ships.
Also, them utants don't have too much space allocated to them, and seem vaguely generic.
So, it's good, and useful, though I'd elaborate on a) the native 'fauna' , think up some more original plot hooks, and spice the prose up a bit.
I especially like the perky clerk who is exchanged every day, the self-correcting newspapers, and the plot with no-one having ancestors buried in the graveyard. (3, 6, 10). And, telling one guy something and the whole twon knows it.. that be quite creepy indeed (7).
Some of these plots are actually too subtle to be noticed by the players, though - no-one wearing blue is quite inconspicuous unless it's a bunch of sailors.
I'd also sum up all the "strange product" points into one.
Anyways, thanks for this, I'll use a few ^_^
A note - simple math states that Kandolari populations will dwindle - a female needs to have more than two viable offspring that reach maturity to maintain a population. If infant mortality, war and disease play a large role, this number rises steeply.
Browsing once more: hair grows out of follicles, not pores.
Also, I would not have mutant 'castes' - mutation through its very nature is random. So, the same mutants are unlikely, unless the variant is caused by dormant genes that are easily activated; or unless the mutant breeds true, giving rise to a branching-off sub-species.
With their elfin appearance and colorful hair, they also confer an anime feel - I don't know if that's intended.
So - a register with obelisks as terminals, and they perform all sorts of privacy violations, store personal information and are willing to hand it to third parties, perhaps? So prone to abuse!
At least the obelisks do not perform cavity searches.
All in all, this has great potential, but really needs a more thorough write-up.
I thought on this a little: the Elves could be manipulative bastards. Just consider it: you have limited resources, limited space, and all those humans and orcs breed like rabbits. The only thing that keeps them from fillingg every space is that they kill each other constantly.
What if they stopped?
With a little encouragement, they are prone to go bashing each other again. With elven guile and sorcery, this is all but child's play.
So, the elves play the factions off againt each other, to draw attention away from their secluded homeland.
They may even acknowledge that some humans have potential, and lure them away, giving rise to all the myths about faeries abducting children.
Echo likes, a lot. Especially the aspect of how they are not hollow armor, but rather armor that wears people... or pieces of them, at least. I can really imagine a bunch of Knights holding down a captured victim, and forcibly dressing him up in the armor, then letting him rise as a complete knight.