I used to do this one on Live with a Wood Elf ranger. It always freaked people out seeing one running carelessly around *most* of Neriak.
Once you do the quest enough times, you'll still be KOS to the caster guild and the clerics, the SKs, and all of that stuff...so steer clear. Most of the guards will be OK, but those will be the ones patrolling the common areas in Neriak Commons and the Foreign Quarter, etc. You'll probably have to do the quest a lot more to bring the guard factions up, but you can get it to ally level with them. It took a LONG time for me to do it.
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