Another post on the top ten troll questions.
(2). Do demi-humans have souls?
I don't even have demi-humans. As I said before, I hate that term. They are just "other races" or maybe "humanoids" to me.
This is mostly inspired by later editions, which explicitly stated that Raise Dead could not be cast on an elf, for example, because they do not have souls. The funny thing about this is: in OD&D, it wasn't elves or dwarves who couldn't be raised, it was halflings. And honestly, I figure that was just an omission, or perhaps it was done out of spite, not because of any deep cosmological principal.
I pretty much think of anything with a personality as having a soul. Not that it matters much, because aside from a small repertoire of spells, "souls" are not really part of the system. It doesn't matter if elves have souls or not. So why worry about it?