Werefolk are those people and beasts afflicted with the curse of Lycanthropy. Linguists note that both are technichaly misnomers, as ‘Were’ is a Dorfish word meaning ‘person’, and ‘folk’ being a Dorfish-derived common word meaning ‘people’, and ‘Lycanthrope’ being a Skalexic word applying only to werewolves. However, most people say the the linguists are daft, and, if they’re so smart, why don’t they come up with better words to describe them? Most linguists would note that the best word to describe the class of beings would be Therianthrope, but people don’t listen to them anyway.
That brief tangent aside, Lycanthropy works as described in the Monster manual, with the following caveat concerning alignment; contracting Lycanthropy does not force a change along the good-evil axis, but it does across the law-chaos axis. Furthermore, a were-beast’s alignment across this axis has been reconfigured for each species, depending on a certain criteria, subject to DM interpretation. If that beast in nature works in organised groups, like a wolf pack or a lion’s pride, they are lawful. If they are solitary or reside in small nuclear families, such as bears and boars, they are nuetral, and if they swarm (like rats) they are chaotic.
So long as they aren’t evil (and/or chaotic, depending on the patience and liberalness of the local communities) most werefolk live quietly in small hamlets and villages on the edges of forests, often remaining in their hybrid forms for most if not all of their lives.
Additionaly, all lycanthropes are infectious, regardless of wether they were born or infected lycanthropes, and all births in which at least one parent is a lycanthrope results in lycanthropic children.