[SirWillow]

Hate to be the bearer of bad news, but it sounds to me like you're out of luck and are in need of starting over.

If you've failed on pickpocketing, then the barmaid and everyone else will turn against you. If you left before you saw them turn, it still won't prevent them from turning. And there is no making peace at that point.

In spite of what the others say, you really can't afford to do without the wizard or blacksmith. They are your main source for weapons, spells, and other supplies through the game, and the other stores can't make up for that. Not to mention the huge prices you'll be paying from having lost your rep when you killed the townspeople just to save your life.

Here's what I would do. Load up your game, pause it, then start exporting your characters- taking everything out of containers (scroll pouches, gem bags, etc) because you'll lose the containers and everything in them. Then restart a new game and instead of generating all new characters import the ones that you just exported. You won't lose the work you did that way (levels, equipment, etc) and while you'll have to replay the first 2 chapters, they won't take you that long at this point.