One thing worth asking before we establish where the races originate (which can only make naming them about ten times easier as you don't exactly want your Dwarves growing up on Fairy Island)...

Is this world going to have a 'God' given to it? Possibly our collective imagination effectively being the God, of course. If there is, we can have a lot more freedom to mess about with where races begin. For example, if there is a God, then you can say that the elves began in multiple forest at the same time, with no need for a logical way for them to expand from one original area. Meanwhile, if there is no God, then it would make more sense for something similar to Elves to spread from one forest to another, to another, over time. So the one they start in would likely be named by themselves, but forests closer to humans would be named with human-like names before the elf-like race got there.

I hope that makes sense!

As for what names to use, I think the old continent names aren't terrible, but could be worked on. As I said before, I do like Greenfrost Island, and I certainly approve of the Shiny Islands as these just seem to be natural ideas for island names. For continents, names like Dulake (if you say it Doo-lah-kay rather than Dew-Lake) and so forth are good ideas. I think we should just grab some old, some new and wait for a few more ideas for the last ones. But for anything that isn't a continent, I think we should work on the races before we work on the names, purely for the sake of it making sense as to races being dominant in the cities that they have named.

EDIT: Oops, missed some posts since I took too long. xD I agree with Proto particularly for the continents, that's a very good idea. For countries/regions, I think regions name themselves according to races. Countries need to be race-dependant to some degree (again, you don't want Dwarves being abundant in Fairyland, do you?). I think when it comes to controlling names of areas, we should work together so it makes sense. For names of people-groups, though, for example "The Royal Family", "KGB", "FBI" and "TNMT", I'm sure that people can have near complete freedom.