Ok so we are sitting at Othrelos' table planning the Ultimate Heist (Grey Fox again invited me to sit down) and my mouse over highlighted red on food when i tried to get up. Yoink! The Grey Fox yells Guard Guard. I blink. I go outside and a guard tries to arrest me. I escape and see I have no bounty. I walk up to a guard in Bravil and he tries to arrest me too.

wtf

ill go steal sometime outright and get it fixed at the doyen. might help

btw I broke into Ganredhel's place for another meeting with this guy after the meet she comes racing dowstairs and orders me out, then she attacks me. Grey Fox is sitting right there. poor scripting

Maybe you were just a scapegoat for a bigger plan

I feel sorry for you but that is a hilarious glitch , the grey fox screaming guards when you've stolen a mouldy piece of bread..and of course when hironymous lex comes in he wont notice the grey fox sat there staring at him...

Yes people telling you to get out of their house when they've just finished a speech saying they will welcome you with open arms is a common problem ...but its just the scripting , the npc structure in oblivion wasnt complex enough to recognise "friends" and when you were trespassing in their home .

Sounds to be like you probably have some minor conflictions causing this problem - are you using any mods