I just thought I'd share my favorite lowbie farming spot: Pyrewood Village.
The mobs are all 12-14 elites and have a decent respawn rate. They have fairly decent drops, but it seems that at night, when they change to werewolves, the drop rates get MUCH better. Plus they're easier to kill than their human forms. Note that the first time they appear as werewolves, they have weapons in their hands and the drops are the same as the human forms, but after you kill them once, they will re-spawn without weapons. This is when the drops improve.
There's also 4 chest spawn spots. I do loops around the village looting EVERYTHING until my bags are full, then run over to the vendor by the greymane wall and dump all the trash and food that I don't want. Then I go back and repeat. At level 30-40, you can get about 30 green items, some gems, some herbs, several recipes, and a bunch of stacks of linen in about an hour of farming.
The green items you'll get are usually level 7-11 or so. This is the BEST place for greens at this level. I can almost always sell them for 50s-1g each on the auction house because nobody ever bothers to sell low level greens and there's no competition. Plus, people are always leveling new alts and gobble up low level greens to make leveling easier. Since the listing fees are so low, the profit margins are much higher than other green drops in the game and you can re-list them many, many, times until they sell without it eating into your profits.
There are other similiar higher level "elite" areas like Dun Garok, but Pyrewood Village is always my favorite.
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