Yeah man, I solved all the quests in Verdistis way before (I am a member of both guilds, killed the vampire, and offered some hoes for those two sorry looking idiots at the Inn etc..).
I will check again for you guys about the reputation, I was sure it dropped but now I am not so sure anymore....YOU HAVE MORE XP IN FINISHING IT THAN ME!!
Its not a big problem anyways, I gained it back, I am a positive character...