I have also noticed an issue with the guards/merchants of HHK. Took all of about 20 smuggler deaths to reach KOS with the guards, and dubious with the merchants. I have spent 5 days killing gnolls in HHP and I'm STILL KOS with the guards (can't even turn-in scalps yet). That being the case, Tarn Vislin in HHK is on the merchant faction (hooray me!) so I can't do any of the Sol Ro quests related to him. According to Illia's, he is supposed to be beta neutral, and you can even turn-in bloodstones to raise beta-neutral faction. But sadly, I continue to grind and hope I'm just being crazy and impatient. If anyone else has noticed otherwis, let me know!
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