Ok, that means you need another 186 and you'll be golden.
Playing a Dark Elf is a nice, quick way of getting to know factions, especially if you decide you want to live on Thestra.
Course Goblin and Orc works too.
I may only have needed 200 -- I didn't actually check, because I'd only just read that we needed 350 or so to get rid of most KOS flags. Those mobs were 8 levels below me, dropped like flies, and got me about 25s in junk loot; not a bad haul for a couple of hours (she's a bard, she kills quickly). I do know that even with Bordinar's Cleft it was only 200 -- by then I was actually checking.