Wood elves. My friend plays them well. HE uses their mobilitiy, so that he uses his skirmishers and treemen as bait, moves out of the way or runs from most attacks and shoots alot. Its very difficult to attack unless you use two units or a flying unit to get an attack off he can't dodge. Even though I don't think too much of Wodd elf magic, they are very good at banning spells as well.
Flyers are effective, if used in great number. Flying heroes can be a reall threat as well, though you have to accept the fact that rangers might take down one. Calvary is also okay if you use multiple units together. infantry is rarely effective. The only melee unit I really fear is the tree man, but since Woodelf heroes can't usually do much in hand to had, I try to make one or teo heroes treemen killers
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