Goodness this thread got nasty quick.
I'm going to ignore the bickering and respond to the OP.
For me, it depends entirely on the setting. I'm not familiar with, nor have I ever played in PFS. That being said, consider the following:
It stands to reason though that in any high magic setting, the common folk have come to accept the strange and unusual as part of their daily lives. We then go back to the "it depends" aspect of this. How frequently do bizarre things happen? How prolific are non-human races in populated areas?
For the sake of answering the 'how' part of your question, lets assume for a moment we have a village populated by humans. Let us also assume that the only non-human race they've encountered is goblin. We'll also say that the goblins have not been especially friendly, having raided the town, perhaps even killed a few people.
Here we have a populace whose experience is the tilling of earth, the changing of seasons, basic survival, the village festival, and of course all the interpersonal shenanigans common to small communities. Add a collective disdain for the only thing not like them, the goblins in this case, and a form of paranoid racism begins to flourish. Resentment festers from the deaths of loved ones. Children are taught to hate and fear any goblin they see.
Then, one day, a half-demon lizard man with flaming wings and a huge- sized flaming spider pet (I realize it is an exaggerated example, but it is functional for this little scenario) enters town. This creature is so far out of their daily experience, that most will likely respond with terror with perhaps a few with a modicum of fascination. To deal with something so strange, it is likely village elders would be summoned, guards would be alerted, and it would be the biggest event the little village has ever experienced.
We are all influenced by our environment and our experiences, and this is also so for NPCs, both individuals and groups. I'm not a psychologist, but it doesn't take a stretch of the imagination to envision the outcome I depicted above, nor does it take much to predict what would happen if a player with a goblin character were to enter town.
Unfortunately, what this means is more work for the DM. If you are going to allow strange races into your game, then you might want to have at least a basic idea of how different communities in your campaign will react.
In the world I created, Drow are exceptionally rare, so much so that most average folk have never heard of them. Elves on the other hand are extremely prolific. So, average people would see a Drow with about the same reaction as seeing an albino, or "I didn't know elves came in that color".
