Level 30 and STILL every guard in Markrath hates me.
I've tried every trick on the forums/wiki and nothing has worked to fix it. Am I a little ticked about it? Yep, I have several un-doable quests there and it's frustrating me to no end.
Do I love this game? Without a doubt, and I decided when the bug first hit that I'd start over if it wasn't fixed right away. Well, still going.
Best thing to do is roll on, wait for a fix and most importantly, let every forum know every bug you have so it can be addressed.
Good luck to you OP, hope it all works out.
Playing on pc, btw.