Crystal Caverns
 

Faction from killing the orcs should give negative orc faction but should also give vendor faction for the dorf town in CC. At this time there is no dorf faction given when you kill orcs so you cannot interact with the vendors unless you can do the sneek trick.

I also thought I remembered being able to raise faction with the dwarfs by killing orcs in this zone (although the two characters I leveled here were a rogue and a monk, so maybe I was just sneaking).

This post seems to indicate, that at least at first, killing the orcs did NOT raise your faction. It looks like the only way to raise faction with these dwarves was through an expensive (pp-wise) quest.

Eventually in December 2002 they did add faction hits to the orcs.

Truth, Very few ways to get Frostone faction currently.

at some point the faction was added i guess it must have been in a later patch but if you were to look now at the allas faction for the orcs the opposing faction is "Citizens of Froststone" just not sure when it was added. I do however remember killing in CC with my ikky monk on Torv server and gaining faction where i didnt have to use sneek any more to buy/sell and i never did one single quest in the zone.

The positive hits weren't added till 2002, so don't kill those Dwarves if you want to keep it :x