This game is going to use only the core rule books unless you ask permission for something else. Permission will be granted if your idea is interesting and can be justified with a valid history in the contect of the current campaign. This means that most of the non-core races from the Forgotten Realms Campaign books are out. Monster Races are on a case-by-case basis and subject to the rule of cool: If I think it's cool, it's allowed. If I don't, it isn't. Detailed history ups the coolness factor. As a matter of fact, all non-core details are subject to the rule-of-cool.
Use which ever method you wish from the Player's Handbook. If you choose to roll you stats, please note the rule about minimum and maximum adjustments and please roll all six stats before you decide if you like that set of stats. It's more interesting that way.
Starting with Magic Items
Pay for it with your starting monies, or you can't have it. See Rule-of-Cool for exceptions. I may impose a steep penalty on even Rule-of-Cool exceptions to keep the game on an even footing.