If anything I've made the guards care more (they now have dialogue that urges the player to talk to Socucius Ergalla), but as for why they don't do more, that's just the kind of place Morrowind is, I guess.
Ah. It seems like an oversight with the dialogue filters in my opinion. The response was probably meant to be given by any civilian in Seyda Neen, but didn't filter out the Imperial Guard ID.
"Like-minded friends" huh? If they're who I think they are, that just makes me want to kill Foryn even more (I always kill Orvas Dren in any playthrough).
I haven't used the mod, but judging by its description, the player would need to reach journal index 100 in the Death of a Taxman quest to join the faction. I haven't changed this index, so it is probably compatible with this mod if you complete the quest by killing Foryn Gilnith.
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