I did the priests of life faction in Qeynos on my Dark Elf cleric for the Aegis of Life quest a while back and I'm now warmly to most everything in the city, including the bankers, but it doesn't fix the casters guild faction and there are a couple of wandering wizard npcs in South Qeynos that will quickly ruin your day as they are highly kos and are 60+. But if you get a feel for their pathing you can time your run to the bank and avoid them. Coming out of the bank you won't know if they are right there or not, so I pretty much make sure I'm buffed and have both DAs up when I'm down there. It also trashes your evil guild faction in the aqueduct, but at least you can go bank or catch the boat without having to invis (except for the 2 casters). If memory serves I don't think the merchants will deal with me, though. I did it for the quest not for the faction itself so your mileage may vary. I kind of like being able to bank there without having to go to the basement, though.
Fastest way to do this faction is to get a druid to wolf form you then hand bone chips or gold pieces 2 at a time to lashun novashine who wanders outside the gates. It takes a while but eventually you will be non-kos. There are some other turnin quests you can do but this is the fastest way.
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