There are two kinds of Repuation, Good Reputation and Evil Reputation. A character gains Good Reputation through noble and heroic deeds, and Evil Reputation through shady and villainous deeds.
Various acts are awarded certain amounts of Reputation, varying from 1 point for a minor but noteworthy action, up to 10 points for a truly heroic or villainous deed. Depending on whether the deed was Good or Evil, the character will gain that many Good or Evil Reputation Points.
A character's Net Reputation is his Good Reputation minus his Evil Reputation. A Hero is a character with a positive Net Reputation. A Scoundrel is a character with a negative Net Reputation, but whose Net Reputation is above -30. A Heroic Scoundrel PC will topple over and become an NPC Villain if his Net Reputation goes below -30 (although the Scarovese Advantage may lower this threshold to -45 or -60).
On the evil side, a Villain normally has a Net Reputation below 0, and a Villainous Scoundrel can have a Net Reputation as high as 30 (and Scarovese can increase this limit to 45 or 60 as well). A Villainous Scoundrel can drift over and become a Hero if his Reputation increases beyond this limit, although this usually is not a problem for the GM.
For every 15 total points of Reputation a character has (both good and bad), he has 1 Prestige Point to put towards Prestige Skills.
Also, a character gets all abilities that he qualifies for in the following table, for both his Good Reputation and his Evil Reputation. The ability is the same for both kinds of Reputation, but the circumstances where it can be used is dependent on the nature of the Reputation. Characters qualifying for a benefit with either Reputation may use it in either circumstances.
A downside of Reputation is that strongly aligned characters may balk at dealing with someone with a high opposing Reputation, even if their Net Reputation is "respectable". A strongly Good or Evil person will simply not trust someone who clearly is playing on both sides of the line.
Characters who wish to "clean up their act" (in either direction) may perform atoning actions. If a character is trying to atone (either for Good or Evil actions), he may declare that he is doing so. While atoning for evil deeds, a Hero would sacrifice the Good Reputation awards for his deeds in order to cancel out an equal amount of Evil Reputation. The reverse process would apply for a Villain trying to clear his "bad name".
Certain Memberships or Societies (such as Elaine's Knights or the Knights of the Rose and Cross) have limits on how much Evil Reputation their members can acquire. Members who pass this limit may be disciplined or kicked out of their order.
Prestige Points allow a character to surpass normal human limitations, achieving heroic talent in his chosen Knacks. The character may spend his Prestige Points to declare certain Skills as Prestige Skills. Making a Skill a Prestige Skill costs 1 Prestige Point. This removes the normal limit of Rank 5 in that Skill. The character may now increase that Skill up to Rank 10 with XP.
The inherent limits of Sorcerous blood may also be pushed with Prestige. However, this is more difficult and expensive. After a character reaches the limits of his blood for his Sorcery Skill, each further Rank of that Sorcery requires 1 Prestige Point. Thus a Strong-Blooded sorcerer would need to spend 1 Prestige Point to increase his Sorcery Rank to 5, and another point to increase his Sorcery Rank to 6. This is in addition to the normal XP costs of improving Sorcery.
An additional effect of Prestige is that as a character increases in Prestige Points, he starts each session with more Drama Dice. For every 2 Prestige Points a character has earned, he starts each session with 1 extra Drama Die.