Setting relationships to ally

Do we have any advanced hints or tips? Im still trying to get the basics right.

Once you've located other characters that are nearby where you are adventuring, use the "Set Attitude" order (e.g., Set Attitude towards Tanakan Mithril as ally) to ally yourself to them (hopefully they will do likewise). This way if you/they are attacked by an enemy, you/they will automatically attack the enemy too. Imagine if there are six characters with ranged weapons (like bows) in a group, if all have allied with one another and any one character is attacked then all six of them will automatically fire back at the enemy (if in range). Its an excellent way to protect your character (and your allies' character) and make friends in the game. I would consider allying with each and every player character you run into in the game.

Does this affect the number of reply attacks each character gets?

I find it annoying to find all my actions have been used in reply attacks when monsters attack me, so when I come to want to attack a monster I have no attack actions left.

Do you know what other settings there are? I know "ally" and "enemy" are two. Is there a neutral or something?

when you fire on the enemy of an ally, it does use up your reply attacks. but its still a superior tactic..... there is a reason why Tanakan Mithril has more kills than anyone else

the four setting for "set attitude" are: hostile, normal, friendly, and ally