@Nirar22 - Thanks for the info on the different worlds! For some reason Cotes d'Ambonnay keep coming up as a 'troubled page' so I couldn't get a look at it. I might grab a couple of the other worlds for inspiration and house designs. I've never built a world before so some the CC they mention I don't really know what they're talking about. (Rabbithole rugs? huh? --> my first reaction. lol!) I came across a couple of these in my search but for some reason I can't find something that feels 'just right'.
While there are some beautiful worlds I'm looking for a very elfish (slightly fairy-ish even) fantasy setting, while a lot of these towns have a very 'human' feel to them if you know what I mean. If you've ever read the Inheritance Series by Christopher Paolini then the setting for his elves mixed with LoTR would be my dream. However, trees grown in the structure of houses would be slightly impossible in game so I want to get as close to that nature look as I can. Although a castle made of wood isn't the best, so I'm playing around with ideas.
My kingdom will be mainly elves, but a few other supernatural types have settled in the kingdom along with some humans seeking refuge. So it's a very particular image I have in my head. Mainly elven with some human input thrown in over the centuries the kingdom has been around. Part of the reason I have started to alter Dragon Valley is because the feel of the town fits more with my idea of how I want the town to look (maybe a bit more LoTR than Paolini's elven forest but I'm trying!).
Wow, this post is longer than I meant for it to be! Sorry for rambling on but I wanted to share my idea for a kingdom without revealing too much plot. But thank you for the world suggestions! I may borrow some houses/castle/lot designs since you're right, they are very beautiful worlds! :D