Killing storm giants raises dragon faction, killing frost giants raises dwarf faction, some giants give both dragon and dwarf faction, killing dwarves raises giant faction, and killing dragons raises giant faction. Each city has its own separate leader faction (Dain for dorfs, Yelinak for dragons, Tormax for giants) that takes a bit more work and specialized killing to raise. People typically choose Dragons and Dwarves, or Giants. Giants require a significant investment of time and effort to faction, while Dragons and Dwarves are easy since you can just kill regular giants to max both of them. Dwarf gear is the easiest to get from relatively low end mobs in Kael, with dragon and giant faction requiring killing some beefier dragon mobs in east and west Temple of Veeshan, respectively.
For the most part you must be a plate class to get a custom helm. The regular faction armor helms can only be customized for plate classes, but there are a few extremely expensive helms, such as Cowl of Mortality, that anyone can customize and wear.
edit: Except for ogre warriors (other ogre classes?) worshipping Rallos Zek who are default dubious to kromzek and kromriff, you always start out KOS with dragons and giants, and dubious to dwarves. Maybe Brell Dwarves start out higher than dubious with coldain i don't know or care
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