I was walking outside of Whiterun last night and I came upon an orc that was all by himself just walking down the road. My character, being the nice guy that he is, thought he'd go over and see how Mr. Orc was doing. He proceded to call me a "milk drinker" and that I should "be at home with my mother." I was in a bad mood and didn't feel like taking any crap, so I sent him to the devines.

When I got to Whiterun, I was immediately stopped by guards and charged with commiting crimes agains Whiterun and her people. Ok, so I got busted. But the bounty was only 40. Shouldn't it be like 1000? Did I do something else unintentionally and it was just a coincidence? What's up with the 40 bounty?

It sounds like you got fined 40 gold for assault, but I suppose since he fought back it was not a murder. Perhaps someone else will be certain.