The Elves of Norse mythology do not play a large part in the affairs of either the gods or men. I know that they attended the funeral of Baldor (setting aside their quarrels among themselves) and that they are mentioned on a few other occassions, but they are not main characters.

The main difference between the English 'fairies' and the Norse Elves is that the Light Elves where not 'diminuitive'. Although of less stature than the gods, they still stood approximately 5 feet in height with a slender build. The English fairies, OTOH, stood only 3 feet or so in height, making them rather comical in appearance.