Fellowship of the Dice

Yeah...I'd focus on making a couple Dwarves and Elves first. I'd do 3rd age, simply since that's more familiar (and as the East is so unfamiliar), it will allow more ties into canon, which will help keep the game grounded in Middle Earth, and not become L5R with TOR mechanics.

Then again L5R with TOR sounds good.

A few of each races is a must, but the histories have to mesh or it becomes less enjoyable. I think we focus on the flavor and story first, then work in the mechanics after.

I think something like this era would be good in the 3rd age, Sauron is in the East, giving us access to his evil plots. He may be in the East around 2063, and on his return to Mordor his Nazgul may remain, or it gives interaction with the Balchoth if its a bit later...

2050- Rule of the Stewards of Gondor begins with Mardil Voronwa
2050 - Sauron takes shape in Dol Guldur
2063 - Gandalf expels Sauron from Dol Guldur
2063 - Watchful Peace begins
2210 - Abandonment of Erebor
2210 - Thorin I settles in the Grey Mountains
2340 - Hobbits settle in Buckland
2460 - Sauron returns to Dol Guldur
2460 - Watchful Peace ends
2463 - White Council formed
2463 - Deagol finds the One Ring in the Anduin / Deagol slain by Smeagol (Gollum) for the One Ring
2465 - Uruk-hai first bred in Mordor (estimated date)
2470 - Gollum hides under the Misty Mountains with the One Ring
2475 - Mordor renews attacks on Gondor / Osgiliath ruined and its bridge broken
2480 - Sauron populates Moria with evil creatures
2510 - Invasion of Calenardhon by Balchoth and Orcs
2545 - Attack on Rohan by Easterlings / Brego defeats the Attack on Rohan by Easterlings
2570 - Dragons trouble the Dwarves of the Grey Mountains
2590 - Dwarves abandon the Grey Mountains
2590 - Thror resettles Erebor
2590 - Gror settles in the Iron Hills
2591 - Foundation of Dale (estimated date)
2747 - Battle of Greenfields
2758 - Gondor attacked by Corsairs

The other option would be to set it in the last 60 years before the War of the Ring. Apparently the blue wizards were out in the East, and perhaps the players role will involve going against the Easterlings (and Southrons, etc), and it is through their efforts that Sauron's hold and armies from there are weaker.

Another option would be after the battle of Azanubizar, since there would be Dwarves from the eastern houses who return East to tell of the tale.