[Maladiq]

Although you help him with Sarah, there is a situation when he tells everyone that you are a former convict. This bug is is started when you ask Pablo about the place where he took the piece of paper with your face on it. When you talk to lord Andre (i was still guildless by this moment and already did the sarah quest) he tell about how suspicious you are because what pablo told him about you and that canthar told everyone about you.

so DO NOT ASK PABLO ABOUT THE PLACE WHERE HE GOT YOUR PICTURE.

[Thorwyn]

so DO NOT ASK PABLO ABOUT THE PLACE WHERE HE GOT YOUR PICTURE.

You only mustn't ask this, if you already told Pablo, that it isn't your picture. Because by asking for your picture after that, you would admit that it is yours which seems to be a suspicious behaviour in Pablo's eyes.

[catalinux]

If you wear an armor when you first talk with him he wont think you might be a former convict and so he wont force you to help him with Sarah. So you wont have any problems later. (you can take for free a leather armor and some citizen clothes from behind Matteo's house)
(and if you wear farmer clothes you will get a funny line )

But I'll try your hint next time (too bed I haven't heard about this some hours ago when I restarted to play G2gold. I already asked Pablo about the picture with my face on it