A neutral rating won't hurt any of the storyline. I killed some sentries early in my first game to get into a restricted area and the lowered faction rating of "neutral" only meant that I had to fight battles with monsters around the T'Rang by myself.
I think I recall someone at RPGvault saying that you could still make peace between the T'Rang and the Umpani with a hostile rating, you just won't be able to complete any more quests though...don't take my total word on that, I am remembering what I think I read LOL.
Best of Luck!
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