My opinion, and I often tend to go towards the rules-light end of the spectrum: don't bother.
Ok, that sounds stupid. Let me explain.
In Fate, having actual mechanical benefits is bought by your refresh, and that's a very limited resource. So if you force people to take powers they don't really like or need, it's going to feel like they are going to need to take a specific race to be most effective in any given class. Granted, that's very D&Desque, but Fate can do a whole lot more, without sacrificing anything.
So let's start with the dwarf as an example (mainly because I love playing dwarfs). Say I'm playing a dwarf berserker. Hardy is a cool thing to have. Darkvision probably as well, though I don't necessarily need it. And then there's stonecunning. Don't get me wrong, it fits perfectly for the typical racial bonuses that dwarfs get, but why does my berserker have to take it? He's never worked with stone a day in his life. It's not important to his life, and more important: it's not important to his story.
And that's really the kicker. A character should have powers that amplify their story. By forcing a power onto them that doesn't fit, you kind of take away from this. If you keep things free, you can get a much broader variety of characters. How about a halfling berserker? Sure, it's unusual, but that's got to be an interesting backstory. And just because he's a halfling, he doesn't have to be any worse at berserking than the dwarf. Or an elven miner with "stonecunning". And so forth.
And here's another kicker: A character can still have a power without having it. Weird, right?
So let's say my dwarf berserker has been exploring an old mine with his party and it collapsed over them and they are trapped below. I can then spend a fate point on my high concept of
Dwarf Berserker from the Iron Mountains and say that my dwarven nose can help me find a way out. By spending the fate point at this moment, I shine a spotlight on this part of the character, it's a cool knightriderbuff, but overall, the character still isn't about this.
Or another example: the Gnome. How tall is a Gnome that doesn't have "diminutive size"? 5 feet? taller? Nope, he's just as tall as any regular Gnome. The difference is that the Gnome without the power hasn't learned to use his size to his advantage. Any negative effect can easily be done by compelling the character. Sure it would be great if you could reach the shelf, too bad you're only 3 feet tall. Fate Point?
If you do it like that, you don't need any predetermined powers for the races. What the races can provide is a justification to take on powers. A dwarf could justify taking toughness just by being a dwarf. A Gnome can justify taking diminutive size for being a Gnome. An Elf can take supernatural senses for his superior eyes and ears. And so forth. That way, you won't get the standard D&D party that the racial bonuses in those systems often form, but a much more varied group of interesting characters.
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And a quick word towards Fate Core. It's a bit more refined than DFRPG, and the rules have been a bit more streamlined. The Fate Core Toolkit has a suggestion for racial bonuses as skills, which I find especially interesting. The idea is not so much "how good are you at being a dwarf/elf/orc", but more along the lines of "how much can you influence the story by being a dwarf/elf/orc". I think that works pretty well, though not in the form of the DFRPG, where we already have a lot of powers explicitly listed. Both versions should work well in adapting the races, I think.