Did you talk to Gil McMartin In commonlands? He is the NPC for gaining faction with Qeynos. Once you have 10,000 faction with Qeynos you should be able to talk to Virsha and do citizen quest.
But if you just created the new fay it may be easier to just delete and remake and switch the right way. City faction is a pain in the *** at low levels.
Edited, Aug 12th 2007 4:42pm by SefanaPPO