Faction warfare .. How does it work?

If I make my way up the Federal flag pole and align myself to that just cause, I presume I'll be KOS in Empire systems and that I'll have free reign on them in Federal space?

How does that play out with CMDRs?

What happens if we meet up in neutral territory (you know - where the lettuce eating types hang out)?
 
As far as i know, so far there is no automatic losing favour with other factions as you gain ranks in one. There have been reports of people being friendly with multiple factions. I would expect there to be some limit to this eventually, possibly even becoming mutually exclusive.

I would guess at higher ranks missions will require you to do stuff that will ensure you lose reputation with other factions.

Pure speculation on my part though.
 
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