Yeah just ran around in Kelethin last night. I was apprehensive to all of the gaurds, dubious to all of the merchants (which means they won't sell to you) and kos to the banker and bard guild. So in addition to bashing orcs need to raise your merchant faction and possibly banker faction.
I didn't do any quest turn ins like orc belts/shoulderpads only the natural hits from bashing in the Orcs faces.
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