With frontiers the allocation of points is kind of tricky. If you want to be one of the mage master classes, they all have different stat requirements. I would use that as your general guideline for where to put points once your main stats (INT and AGI) get to the point you want.
As for the damage modifier question, DEX is still our modifier, but instead of being 60% as it is for Wizzies, it is only 30%. I personally am thinking of being a Pyromancer, so I have started putting points into DEX, since it requires base INT of 200 and base DEX of 150.
As for the original question of which race, Erudites have the best starting primary stats, so they have a slight lead. Their CMs also have pretty decent POW adds. Gnomes, my pick, are a close second, and since all of their race CMs give you PoT, that helps with keeping drinking to a minimum.