After The War
The gods did not create the world, nor are they all powerful, not omnipotent, nor omnipresent. The gods were originally a group of wizards who cast a spell to elevate themselves to beings of pure thought. In the spell, however, contained a not so well thought out system of communication with mortals. The wizards decided that they would hear any mortal speaking to them. This drove most of them insane, those that survived, sanity intact, did so primarily by using their energy to hide their existence.
The wizards, however, required a continual supply of emotional energy in order to prolong their lifetimes. In this, they encouraged the remaining apprentices of their college to sacrifice objects of importance to them, so that they could absorb their energy and continue to exist without draining energy directly from living people. Some gods disappear, others continue to survive. The only two gods of the first wizards who survive, their sanity intact, are Lohr and Tallick.
Lohr was a drunk, semi incompetant wizard of the college, and now takes great pleasure in causing others to ascend, the process of which is unknown. He keeps his life force sustained through regular trades with mortals. Because of this, his energy is never high enough to perform world changing feats, however it replenishes at an incredible rate.
Tallick, on the other hand, preserves his energy, having devout followers who give sacrifice freely, without asking for reward. They believe he will save them should a terrible event ever occour, when only he could save them. Some believe he has expired, or simply ignores all requests of him.
The gods are not all powerful, however they have power exceeding that of any mortal by far. Thanks to Lohr there are now hundreds of gods, the pantheon always changing, so that people usually make small offerings to one of the three of four they know about, when in a sitation where they would benefit from unseen aid.
Because the gods do not have any way to directly contact most mortals, the only knowledge widely belived to be true comes from The Unseen College, the school where the original Wizards conducted experiments and cast their spell.