A guy in my guild found this out last week too.
He was so happy to finally get that ring, until everything attacked him.

-=B=-
-----Original Message-----
From: Kimes, Dean W. <Dean_Kimes@...>
To: 'eqbards@onelist.com' <eqbards@onelist.com>
Date: Monday, October 18, 1999 3:13 PM
Subject: [eqbards] Bugs from last patch (OT ?)

>From: "Kimes, Dean W." <Dean_Kimes@...>
>
>This is another bug I have run into which creeped in in the last patch.
>Apparently if you complete the Squad Ring Quest currently, you are handed
>the ring and also immediately moved to KoS status will all residents of
>Rivervale. How the heck do they miss this stuff? Sounds like they either
>changed the faction hit for getting the ring, say from 5% to 100% (oops
>D'Vinn coder, should been 10%) or they added a faction gain that puts the
>faction 'over the top' thus turning it into a negative number. After
>telling my bardic friend on E'ci how cool the ring was he finally completed
>the quest this morning. He is currently unable to play that character

after

>immediately dying to Marshal Ghobber and reappearing at his bind point...
>Right in front of the PoD in the middle of Rivervale square. Needless to
>say the overzealous litle Zorros immediately whacked him again... and
>again... and again... before he figured out what must be happening and
>pulled the plug. I saw 4 corpses in the Marshal Ghobber room last nite but
>thought little of it chalking it up to the usual
>W...H "Hail Marshal Ghobber"...A "you hit Marshal Ghobber but he dodges"
>syndrome of forgetting to hit ENTER first.
>This appears to be a major screwup that has seriously affected quite a
>number of characters due to careless coding yet again. I'm certain my
>friend has lost at least one level if not more before he was disconnected.
>Not to mention the incredible amount of work he put into getting his

faction

>high enough to get the ring in the first place.
>Has anyone else experienced this?
>Does anyone have any word on how they are planning on fixing this?
>
> Kitasi
> Once more very glad I already have my Squad Ring!
>
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with the subject lol.