For a paladin your choices are limited to
HUMAN:
+5% Experience Gain
+10% Skill Learning Rate Excluding Tradeskill
+5% Increase to all positive faction hits.
-5% Magic Type Damage Received.
+1% Haste
-10 Resist Adjust to all Cast Spells
ERUDITE
+2.5% Experience Gain
+10% Skill Learning Rate Does not affect tradeskill
-30% Detrimental Mana Effects
+1% Spell Critical Chance
HIGH ELF
Infravision
-50% Duration to Mezmerization targeting the player.
-50% Duration to Charm targeting the player.
-10% to Spell Fizzle Rate
+2% Evocation Skill
+2% Conjuration
+2% Alteration
+1 Mana Regeneration
HALF ELF
Infravision
-10% Duration to Mezmerization targeting the player.
-10% Duration to Charm targeting the player.
+2.5% Experience Gain
+2.5% Skill Learning Rate [Does not affect tradeskill
+2.5% Increase to all Positive Faction Hits.
+0.5% Parry Chance during the day.
+0.5% Riposte Chance at night.
-2.5% Magic Type Damage Received.
-5 Resist Adjust to all Cast Spells
+1% Movement Speed.
DWARF
Infravision
-30% Duration to Fear targeting the player.
-30% Duration to Stun targeting the player
+1% Critical Spell and Melee while Drunk.
+2% Critical Spell and Melee Underground.
+1% Melee Mitigation when Underground.
+10% to all stats gained from drink.
50 or +5% after 50 to Mining
HALFLING
Infravision
Consumes Food Faster
Innate Death Save
+1% to Melee and Spell Dodge
+10% Death Save Spell Effect
+10% to all stats gained from food.
+3% Movement Speed
50 or +10% after 50 to Sneak
50 or +10% after 50 to Hide
50 Baking
GNOME
Infravision
+2% Movement Speed when Indoors.
+3% to Proc Rate.
+1% Evocation
+1% Alteration
+1% Conjuration
50 Tinkering
FROGLOK
Ultravision
Improved Swimming
Improved Lung Capacity
+2% to heals landing on self.
+5% Critical Spell and Melee underwater.
+5% Critical Spell and Melee while raining.
+10% Skill Learning Rate [Does not affect tradeskill
I would suggest avoiding froglok, the 2% to heals on yourself is kind of nice, but the times you will be underwater will be few and far between, and the call rain spell doesn't exist (well it does but it has never to my knowledge dropped in the years I've been active..sooooo yeah.) I don't think human or erudite are very good choices anymore either. Human I think is slightly better though (reason being you are not going to get manadrained very often where it is unavoidable), and your general spell damage as a paladin for most of your career is going to be absolute balls. Your heals critting more would be pretty nice, but I think any of the others are going to outpace it eventually.
Half-elf is viable, kind of a middle of the road choice. It's not bad, but alot of it isn't too exciting. Dwarf would be great underground and drunk, mediocre everywhere else, but I tend to have a dislike of conditional bonuses, which should be obvious from my earlier panning of frogloks (though the dwarf conditional is I believe superior).
I'd say go between halfling gnome and high elf. They all have things they are excellent at, gnome and high elf are kind of similar, with gnomes having weaker bonuses to magic, but a better proc rate, and high elves having better mana regen, and a much better fizzle rate. Halflings are a good choice as well, being a bit better at taking damage. I wouldn't worry about the food stats, nor the drink stats on dwarf.
Druids there tend to be alot of wood elves, with good reason. They're hilariously fast in the forest, and the other choices are a bit meh. Halfling is really more a tanking race tbh, though the bonuses are still good for druids as well. Druid tanking is going to be a bit less of a factor for you since you're looking at pally/druid. I'd really go between those two if I were choosing race again for my druid, but I would probably go with wood elf again out of personal preference.
Oh before I forget, here is wood elf for comparison
WOOD ELF
Infravision
Friendly To Animals
+8% Increased Movement Speed while in Forest.
+2% Critical Spell and Melee while Outdoors.
+1% Parry Chance during the Day.
-20% Duration to Mezmerization targeting the player.
-20% Duration to Charm targeting the player.
50 or +10% after 50 to Forage
50 or +10% after 50 to Hide