Introduction
This document presents information on the small dreams campaign world which forms the common background for all the characters. This is all basic stuff, but essential for starting to understand the more subtle parts of the game. As Morgue has pointed out, stuff is already going on based on information that you will not get unless you ask questions and investigate in character. What follows is hopefully enough for you to know what sort of questions you can ask.
History
In the beginning, Glamour infused the world, and faeries lived more or less happily in a universe where the Dreaming coincided with the mortal realm. Then came the Sundering, and Banality started to 'drive out' Glamour from the mortal world. The Dreaming, over time, touched the world only at certain places.
The next catastrophe was the Shattering, when the links between this world and Arcadia - the faerie heart of the Dreaming - shattered. Only the Sidhe, the nobility of faerie kind - returned through the gates before they were closed, and the remaining Kiths (types of faeries) were left stranded in a largely Glamourless world. Unable to maintain their pure faerie nature in the almost complete absence of the Dreaming, these faeries adopted 'the Changeling Way'. They merged their faerie souls with mortal bodies, so that they could escape from Banality.
[As a side note, this raises a matter of definition. Sidhe are not changelings, for they have not undertaken the Changeling Way. I don't yet know what name they use to describe themselves, but I rather suspect they just call themselves 'Sidhe', and that is considered sufficient. Another appropriate (to them) title is 'True Fae'. Just what the Sidhe have done in order to be incarnated in this way, and how, and why, is something for the curious out there to investigate.]
In 1969, the gates leading from Arcadia opened again, and the Sidhe returned to this world. Unfortunately, the gates seemed to go only one way, and no one could make it through back to Arcadia. After only a short while, the Sidhe claimed their former place as rulers of the 'commoners' (the other Kiths). This led to conflict with the commoners who had grown used to living without the Sidhe (for the Shattering was many, many lifetimes ago), and a series of battles ensued, though the situation was different outside of England.
The end result of this conflict was that the Sidhe regained much of their former status, including the rule of many freeholds. However, they were forced to accept the fact that commoners continue to hold freeholds, and would not simply be the followers of the Sidhe. Currently Great Britain is ruled by a council of Sidhe lords, overseen by a Troll; a number of commoners have become members of a 'new nobility'.
The Dreaming
The Dreaming is almost like an entire universe which exists largely separate from our own. It touches more or less strongly at various places (some of these are freeholds, such as Waldren House) and times, and with knowledge and skill Kithain (the name for faeries and changelings) can enter the Dreaming. The Dreaming does not work as this universe does, but rather acts much like the world of mortals' dreams. It is not always a nice place, for it contains the stuff of nightmares as well as more pleasant dreams. Kithain, though native to this realm, are not immune to its perils.
Somewhere in the realms of the Dreaming lies Arcadia, the 'true home' of faeries. Many try to find it, but none are known to have succeeded.
Glamour
Glamour is the stuff of the Dreaming, and it is the source of 'magic'. While the Dreaming seems to have an existence which is not entirely dependent on mortals, there is certainly a close relationship between mortals and Glamour, in that the former are able to produce the latter.
The Changeling Way
With the Shattering, all but the Sidhe were forced to find a way to survive cut off from Arcadia, in a world where Glamour was fast disappearing. The solution that was found was for each faerie to enter the body of a mortal and somehow merge with the human soul within. This meant that the faerie soul was able to 'hide' from the more severe ravages of Banality, even if this meant lapsing into 'unconsciousness' for periods of time, while the human soul was left 'in charge'.
Some changelings say they remember details of past lives as changelings, and so it appears that the faerie soul reincarnates, and as a changeling, after some period of time. Those who remember times before the Shattering are even rarer.
Faerie Nature
Among mortals there is some speculation as to whether each person has his or her own nature, which determines who and how they are to a greater or lesser degree. Among Kithain, this is not speculation, but absolute truth. Faeries who try to go against their true natures are likely to suffer increasing problems as they effectively cut themselves off from the Dreaming by their own actions.
For example, Pooka cannot tell the truth. This isn't a choice that all Pooka happen to make, but rather part of their nature. Consequently, telling the truth is a matter of some effort, and doing so weakens the Pooka. Likewise, it is a Sidhe's nature to rule (though some would say that that is insufficient reason for them to actually be allowed to rule over other Kith).
Being Faeries
In addition to having a faerie nature, there are other truths to a faerie's existence. One of the most important - at least for the Sidhe and Trolls - is that, even if one cannot remember one's past lives, they are not inconsequential. If a Troll served another changeling in a past life, then even in this life there is a connection between that Troll and her former master; not necessarily the same relationship, but it's not something that can be dismissed simply as something that happened long ago to someone else. It's real, and it's here and now. Ignore such connections with your past at your peril.
A Chrysalis Companion is a book written by a Sidhe for the education of new changelings; some excerpts are provided.
Oaths
Oaths are of great importance to Kithain. They are the closest one can get to a guarantee - because if an Oath is broken, the Dreaming punishes the Oathbreaker. With this to reckon with, Oaths are not undertaken lightly. However, because of the threat of punishment, Oaths are also prized as expressions of trust and faith; if you're not willing to take on Oath, how sincere can you be? Furthermore, the Dreaming often acts to the benefit of an Oathtaker while that Oath is in effect.
Oaths are generally sworn for important matters: fealty, quests, deep friendship, etc. However, it is possible to swear Oaths relating to smaller concerns, such as those for which mortals tend to use the words "I promise".
There are extensive "requirements" for most Oaths; those for the Oath of Clasped Hands (close friendship) are written up for your information.