First chart is everything you need to know. Second is more for new players to help tell who they are dealing with when meeting new people around the game. Not a rule... just from experence. More recently, staff has added control over our titles. You can always show no or less fame/karma, but never more then you actually have. Most people just leave this feature as default. Clearly, this was to please the PVP players.
(((Click on the picture for full size.)))
Warning: I can't stress enough to make sure your Karma is not evil when entering the Swoop dungeon in Ilshnar. Beasts like pixies and the very nasty large dogs will jump on you like lightening and you will never recover your stuff. The same thing goes for wild unicorns, kirins, and serpentine dragons. This also goes for the Meer.
It's so easy to forget when you work in an area all the time that’s 100% safe for good karma characters and then you work the newer one that you forget is just over the line to evil. hehe