I retrieved the Bloody Hand Goblin Head from Timberscar Hollow. I also managed to get the Rock Biter Goblin Head while I was there. Upon exiting the Timberscar cave, I was attacked by a lone Bloody Hand goblin. After killing the goblin, I made my way to the Cracked Wood cave, thinking since I had their Goblin Head, they wouldn't attack me. The first goblin I saw ran away. When I got to the cave with the shaman and a bunch of skirmishers, they all attacked me. I thought for sure after reading the description that both tribes would leave me alone. Do I need to come across the goblin war chiefs first before they realize i'm the owner of the staff? Could this be a bug? I have a feeling i'm doing something wrong. The Rock Biter war chief was killed by some bandits outside the Timberscar Cave, if that matters. Perhaps the war chief needs to respawn before any of this takes effect? Any help would be greatly appreciated.

Edit: Here's the mod link so people don't have to go searching for it: http://tesnexus.com/downloads/file.php?id=2915

Edit: I may have found my answer.

http://www.uesp.net/wiki/Oblivion_talk:Goblins

Many people on that page claim the war chief doesn't respawn, but someone else mentioned that after waiting for 3 days, the goblin war chief did indeed respawn, as if the goblins re-relected a new war chief. I'm going to wait 3 days and tet out that theory for myself. I want to lead a goblin army and test this mod out.

Edit: Well I rested for almost 4 days and headed back to Timberscar Hollow. I didn't notice the war chief's body slumped against the entrance where he was last seen, so I thought maybe he had respawned. I went inside and looked around. The first few goblins I came acorr didn't attack me, even after I bumped into them. I thought it might be working. I found the cave where the war chief was along with several other goblins. None of them attacked me, even after revealinng myself. I tried moving around, waiting for the war chief to follow, but he just kept roaming from one place to another within the same cave. I know the shaman of the Rock Biter clan was killed, but according to the above article, it's mainly the war chief that follows the Goblin Head and not the shaman. Why isn't he following me, and in turn, all the other goblins following him? I have no idea. I was wondering if it had something to do with OOO or MMM changing their behavior, but i'm not really sure. Can anyone tell me what could be causing the goblins not to follow?

"If the tribe's shaman dies, the War Chief of that tribe will not follow you. The shaman /will not/ respawn."

Oh. That's a damn shame. I was hoping if they'd respawn things would go back to normal.