How are you using the term "lycanthropy"? Is this the actual werewolf thing or simply the mental disorder? Also, purely for curiosity's sake because now it's on my mind, will you have any form of magical creatures in this, or is the focus just on the magic itself, in the people?
@Stella: This is the actual werewolf thing. There will be more detail on that particular aspect, for sure.
As for what magical/mythical creatures exist in my setting... Yes, they are there.
For a good approximation of what the average citizen "knows" about magical creatures, look at the classic gothic/medieval fantasy, and European fairy tails. Stories about werewolves, stories about vampires (Dracula specifically), stories about the fae: These are what the people "know".
Now mind you, they aren't exactly correct... only half of what they know about werewolves is true, and they are dead-wrong about vampires, but you get the idea.
The council has confirmed the existence of werewolves. They strongly suspect the existence of Fae, or something similar. They know the peasant's stories of "vampires" are actually just werebats with some white vampiric magic. There was at least one kraken, though it has been dealt with. (Not magical, just big)
There has been no evidence of unicorns. Sightings of mermaids and harpies and the like are again more likely just confused peasants seeing weres, though they have not confirmed this.
There have been theories about the possibility of lichdom, and successful experiments with raising (non-infecting) zombies.
Some of the other story lines I have bouncing around my head, and the meta-story that ties them all together features them prominently. That being said.... 90% of this will not be relevant for the first arc, unfortunately.
I N F O R M A T I O N
On hiatus. Updating sporadically while the next arc is worked on.