WoW! Silverthornne! I am in Vivec right now myself but not on the level you are. I dont think the guards like anyone here and your right- stupid guard!! (I haven't found that lady yet thow) This place has alot to do with the main quest but I dont have anything to offer yet.
(Since you have this marked as a spoiler thread I can talk freely!)
I am currently doing the Monk quest of finding all the stones and reading the inscriptions to be inducted. I have found 2 so far and am working on the third tonight!
It was so funny when I arrived here at first. I was wondering around the areas and found the stop the moon stone. I wasn't on the Monk quest then and I touched and donated to the shrine...guess what happened. I could fly!! I ended up flying around mapping alot of the area and swooping in on monsters unknowingly, nailing them, and then flying away! Very cool!! The only thing was that I couldn't rest because "my feet weren't touching the ground"...?? Being on the edge of death I became a little concerned so I let the attribute fizzle away while waiting in a safe place. (Just thought you would find this funny) Well, good luck with what your doing and good travels! And if you see a fully armored Battlemage with an electric war hammer flying around---> its just me