Are elven enchanted items also automatically masterwork items or not?
No. As the rules state: ‘They automatically have the craftsman special ability Enchantment. They only need a Craft skill at 6+ to use it. In other words, they can enchant items without the items being masterwork items. However, if the item is a masterwork item (as it certainly could be if the Elf is a craftsman too), it gains the benefits from being a masterwork item too. Of course, the rules also state: ‘The Narrator has the final authority on what an Elf can do with this ability.
