Yes , but you could leave the i_LocalFaction .. away ofcourse :)

Alex internal faction names are exactly the same as RTW, CA had a lazy fit.... I don't think they're actually in use in the original game though, this is for a mod.
If you hav custom characters , you need to do something extra (you'll probably already know all what i'm saying , but i don't care :P) .. Take a look at LOTR-TW for example , they have some amazing scripts ..