Hi there.
I came across this slight inconsistentsy in an NPC conversation recently. I'm not even sure if this is a bug or not, but when talking to the Elven NPC who gives the quest to collect beetle parts from the burrows near Vallaki, he identified my character (correctly) as an outlander, but then proceeded to warn me that, since I am apparently a 'caliban', I should avoid civilised areas since the guards will attack me on sight.
This came as quite a surprise to my human outlander, since he had been spending quite a lot of time around Vallaki and had not had any problems with the guard!