With regards to OT hammer, unless you're already amiable faction in OT, most people either use guild resources (if you're in a guild) to use puppet strings to charm the quest giver and then turn in jade for hammer or pay someone to use their strings to do the same. In either instance, faction is irrelevant as you'll be using charm which automatically give you sufficient faction to do the quest. So feel free to trash your OT faction whenever you want if you're going to buy the hammer.
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