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Earlier I was browsing through Planet Elderscrolls and I came across a race mod by Westly. In the description he commented that Bretons are actually half elves. Since I'm not extremely familiar with ES lore, I found this intriguing and did a Google search. One link that popped up was at Wikipedia, and I found it quite an interesting read. It gives *much* more background than the manual.
Anyway, I decided to post it for anyone who might be interested.
Races of The Elder Scrolls - Wikipedia, the free encyclopedia

Warning, there are a few spoilers in the article with regard to both Morrowind and Oblivion.

I guess that makes sense as they do have some things that are similar to elves, such as their magic etc.