Are you being attacked by adds when you tried to talk? I just find it funny that out of teh 3 walkthrough's I seen, they all say they a are KOS but slavemaster still talks to you. I don't know if you being attacked by adds would tic him off or not. My Wiz just got 25 so I'm not QUITE there yet. But I'm working on it.
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I might be wrong... But I think it's the darkwood goblins. I think they're in Asealop's Wall... In a huge revine. Don't take my word for it. Just a guess.
They might do it, I too forget. The easiest way to find them: go to the little viallage along the road just south of DM, then go SW from there, not even half a zone travel. Fastest way to raise the faction: follow a higher level AoE Alchy n just slaughter them all.