I would suggest pumping up your strength above all the other stats, thus
enabling you to wear better armor later among other things already mentioned
in other posts.

As far as best race goes, personally I dont think there is one. I play a
wood-elf and a half-elf , putting most of the extra points into strength on
both characters and there isnt a difference in playability that I've seen so
far. The wood-elf is my favorite though only for convenience sake since you
get forage and hide right off the bat where as half'elves dont. If you like
being human go for it, never played one yet as I dont like the lack of night
vision.

Hope this helps =)