Lord Vlindrel's curse has no other effects than the elemental weaknesses it applies, and it should be removed by the end of the Knights of the Nine questline.
Bounties of 1000 gold mean that you've been murdering people; either deliberately, or by accident in combat with NPCs helping you. Have you?
To be clear: it isn't murder if the NPC attacks you first, unless they're a guardsman. You'll know if you've committed a murder if a message appears in the corner of the screen saying that your screen saying that the killing has been observed; also check the statistics page to see exactly how many murders you've done total, if any.
Other than murder and stealing, the only way to get a bounty that high is being caught repeatedly for pickpocketing, assault, or trespass (but understand that you've have to commit hundreds of trespasses and nearly fifty assaults or pickpocketing to get it that high), or by accusing one guardsman of corruption during a quest.