NPC's in Brill appear hostile to an undead?

[Radvo]

I've tried deleting the WDB/WTF folders, relogging, I'm not at war with undercity... so what is happening ? Note, I've made undead characters before, never had this...

[Radvo]

Now also items show as usable (white instead of red text)... Note: You can see I have disabled all my addons and this is with the WDB and WTF folders deleted...

http://i.imgur.com/lsJNr8B.jpg?1