Talun gave them power to create their own lands, within the boundaries of Erdor. The Three Erdoras were Arden, Verda, and Milcoth. Arden made his lands near Verda's, whereas Milcoth made his corrupted and far from the others. Talun also makes his lands, and built it in between Arden and Verda.
They were also allowed to make a race, their "children". Talun makes angel like creatures called the Sapientem. Verda made elves, and built them homes on her lands. Arden creates the dwarves, and digs them mines deep below the ground. Milcoth, makes Orcs and Goblins, and builds a fortress on his destroyed lands.
Talun then punishes Milcoth, and makes him mortal, so he cannot harm any of the peace within Erdor. Also around this time, the Sapientem travel to Verda to live in the Elven homes.
Also later in time Talun makes spirits called the Irata and the Itara, which later become wizards and witches.