DwarfThe 1/2 level dwarf has 1d8 hit points, +1 to Fortitude and Will saves, +1 to attack and damage, the normal dwarf-y senses (infravision, subterranean senses, ability to smell gold, etc.), may burn a point of Luck to make a Mighty Deed of Arms. The dwarf does not get any ability to perform a shield bash at this level.
ElfThe 1/2 level elf has 1d4 hit points, +1 to Reflex and Will, the normal elf-y senses (infravision, detection of secret stuff, etc.) and may cast Invoke Patron and Patron Bond; he may Spellburn when he casts these spells, but if he does so, he immediately takes Patron Taint. He may not burn Luck to reduce or prevent this Taint.
HalflingThe 1/2 level halfling has 1d4 hit points, +1 to Reflex and Fortitude, halfling-ish senses (infravision and... I don't know... always knowing which way it is to the nearest kitchen or pub?), may fight with two weapons as normal (i.e., as if he had a 16 Agility) and may spend Luck both normally on himself and on the actions of his allies; this Luck expenditure is never doubled (it is always at a one point for one bonus basis).*
*There has been some debate as to how much of a bonus the normal halfling's +2 from Luck expenditures extends to his ability to spend Luck on his allies' behalf. Some folks (myself included) said it should only be +1, since the language of the text states that this extra bonus applies to the halfling's use of Luck, not his expenditure of Luck to improve the an ally's rolls. +Joseph Goodman has gone on record on the Goodman Games forums stating that yes, indeed, the hafling's +2 Luck effect does apply to Luck spent on another's behalf.