You'll find yourself on Sunstrider Isle upon zoning into the game when rolling a Blood Elf. From what I can tell on my brief run around the Isle most if not all the mobs in this 1-5 starting area seem to be neutral or yellow (so non hostile), which is good, that helps when you are working on getting your feet under you and a handle on the class you rolled can do. I did not see any humanoids in this area but there are still some options for you here to grind on.
The Tenders and Feral Tenders (the little trees) drop a Frayed Tender Vine that vendors for 5 copper a piece as well as a Smashed Petal that vendors for 6 copper a piece. Then you have the Springpaw Lynx( the cats prowling about). I got Tattered Pelts to drop with a vendor of 5 copper each as well as Lynx Tooth (teeth) that had a vendor of 4 copper each. You also have the Mana Wyrms. These guys drop a Faintly Glowing Eye worth 5 copper and a Torn Wyrm Scale worth 4 copper. The Arcane Wraiths and Tainted Arcane Wraiths over by the Falthrien Academy drop Wraith Fragments that vendor for 6 copper, Sparkling Dust worth 5 copper. Now I also had three 6 slot bags drop while grinding on these guys as well as some grey gear. Not sure if that was just random odds or not though. The Tainted Arcane Wraith also dropped an item that starts a quest, should you pick it up just abandon the quest but leave the item in your bag so you don't end up picking up another one until you leave the area. That way you won't need to keep abandoning the quest. So it will really be your choice as always for what you want to grind on to get to level 5. At level 5 when I cleaned out my bags before moving over to Eversong Woods, I was at 6 silver 69 copper. Not earth shattering but not too shabby either.
Now something else to keep in mind as well, you could head over to Eversong Woods at level 4 and kill the Wretched Urchins on either side of Dawning Lane.
When you get to Falconwing Square, I would recommend changing your hearthstone in case you forget to change it further into Eversong. At least this way it's not as long of a run back. You'll also find a First Aid trainer on the second floor of the inn. I know not everyone likes taking First Aid. I don't even really use it on all my Blood Thirsty toons that much, however you never know when you might need it so it does pay to have it up to date as an emergency back up.
Sunsail Anchorage is one spot I like to grind in due to there being humanoids all over. Now this is a spot that people get sent to for a couple of quests so it might be busy in this area. The Wretched mobs here seem to range from level 6 to level 8.
Should the Sunsail Anchorage be too busy you can try heading over to the Golden Strand. Here you will find lots of murlocs. They can be tightly packed in some spots so you might need to sit and wait a few seconds for them to walk away from one another so you don't end up pulling more then you were expecting. These guys range from level 7 to 9. The murlocs can drop an item that starts a quest, just like before go into your log and abandon it but leave the item in your bag till you are done killing in this spot so you don't have to keep abandoning the quest repeatedly.
The undead in the Dead Scar are also an option dropping cloth and money. It is really easy to get overwhelmed in this spot though since the mobs here are pretty tightly packed.
Lastly, I will also check out Tor'Watha. Tregla a rare troll was wandering around the huts while I was up there so that was a nice score. I did get another 6 slot bag to drop from the trolls up here as well.
So just keep grinding till you hit level ten. Once you hit ten head on over to Silver Moon city, put up any greens on the AH, train up your First Aid and get ready to head on to the next zone.
