Not sure, but I think it still does not work. If you've unticked the 'global' box and it does not help, consider using a simple script that sets the lizard's faction to hostile upon being attacked.
Also, where is my lizard skin/are my lizard-skin boots [img]tongue.gif[/img]
Perhaps you could make a small quest out of having the hide cured, delivered to a cobbler and then enchanted by a mage...
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