I pick demonic/fell, mostly because that's in line with the sort of characters I've played in the past. The "Descendant of Myth Drannor survivor" comes to mind.

Faerie. DEFINITELY pick Faerie.

Choosing Liches is a waste: If you can hit the Lich at all, it's as good as dead, and they have lousy AC anyway. I feel the same about Vampires: As long as you're immune to Level Drain and Charm, you're pretty much invincible, since they're lousy fighters. I always pick something where that +4 to THAC0 is actually worth having: Dragons, Demonic/Fell, or Golem.

What creatures are considered Faeries???

Gotta agree with Illumina, pick demonic/fell. There are plenty of demons later in the game and especially in TOB, and a lot of them are HARD SONS OF *******!

Actually demonic/fell is what you really need when fighting liches, because most of them cast gate.

I seem to remember racial enemy also giving the specific enemy race a bonus to hit you, or am I remembering wrong? If so you definetely don't want to make it vampires or mind flayers.

So...Valygar chose the right racial enemy and Minsc didn't? Well I thought the other way....

Oh, and you joked about Faerie thing right? :D

I usually choose vampires for my natural hate of level drain

If I could I would pick em all... cause I have a natural hate of everything, living, Undead, no difference kill em all :D

I have to go with Vampires as well...

A Cleric Ranger with the Amulet of Power and Vamps as the racial enemy can allow you to send in the character alone and immune to level drain and the bonus... just a walk in the park, Kuzanski...

I always thought Valygar picked Golems because they are creations/servants of Mages, which is what he would really prefer his racial enemy to be (based on family history).

If you have the Amulet of Power, and a Harmony Shield, you won't need the benefits of having the Vampires as your Racial Enemy.