@Xen()morph
Keep in mind that added factions will only interact with other factions in MultiPlayer! In SP, added factions will fly around and do their stuff, but they will be neutral towards all the other factions. They will shoot back at the player if they are attacked, but it just seems that SP doesn't read added factions' values in InitialWorld.ini so they'll have no enemies and no friends. So unless you want to create a Space Hippie ("live and let live"
faction, you'll need to work around this fact.
*(I'm talking about OpenSP now, both the classic version and Argh's alternative version. Maybe this isn't true for normal "storyline" SP. I never tried.)
So, if you're making some sort of an OpenSP mod, then you'd better use one of the minor factions, like fc_ouk_grp or fc_f_grp**. You'll need Anton's rep list hack to make them appear on the rep list, as those factions are normally blocked: Open common.dll in a hex editor (like Hex Workshop), search for the nickname of the faction you want to unblock (like fc_f_grp) and replace its nickname with dots .....
**(Of course, these factions play a role in the storyline, so you can't alter them without screwing up the SP storyline. But then again, maybe adding completely new factions isn't a problem at all when the player goes thru the storyline).