Yes, I see how that can cause confusion, and it makes sense that you should be able to tell him that the Rathound King wants to make truce with him, for instance. Or kidnap someone from the camp.

I've noted it down and will take a look at it once I have some free time. However, I feel that the regalia needs no added hints or anything of the kind, as both parties make it pretty clear that they don't like each other, and players generally figure out why they're being attacked quickly in any case. NPC's yelling "It's the Rathound King!" is not a bad idea, though. For flavor, if nothing else.
And I've fixed the quest(s) not failing properly if you kill Edgar. All in all, thanks for posting, and have fun.