Fairies and elf's and such are true I believe. People have seen them. I believe that in the case of the Cottingley Fairies, the fifth photograph was real. Elsie and Frances admitted they were fake and the 'fairies' where cardboard cut outs held up with hat pins.
http://en.wikipedia.org/wiki/Cottingley_Fairies
But if you look at the fifth photo, the fairies are tramsparent and you can see right through them. One of the sisters have claimed that the fifth is real to the deathbed and I believe that.
I've added the famous fifth photo for your inspection.
My mum used to tell me fairies lived at the bottom of the garden but it was just her entertaining me. I do believe in them but I think they have to trust you before you can see them. I used to read alot about fairies and there is a lot of fiction books out there on the subject [The Faraway Tree by Enid Blyton] and films [Willow] to make people believe it is fantasy not a reality.