Umm....actually, Elves die when they die....they just don't fly to Valinor.
The remaining living Elves go to the Undying Lands but they don't get back into Valinor.
And Orcs are made from Elves, I believe it's another doing of Morgoth, he captured elves and started to 'mutate' them into orcs.
Nasty little buggers aren't they?
well when someone said that when elves die the go to valinor they were sort of right. when they die there spirits go to the halls of mandos which is in the undying lands. When elves first came into the world a few were captured by the dark powers that were and then tortured and corupted to the point where they became orcs. as far as i know that was the only time that happened and all the orcs from LOTR where descended from those orcs, not new batches of freshly corrupted elves.